1. Global events, such as the intensely divided presidential election that we just lived through, are certain to generate some periods of market volatility of varying lengths in addition to a significant amount of stress. However, we urge financial advisors and investors to retain a few dos and don’ts to help manage post-election anxiety:
    Don’t equate risk with volatility. Volatility does not equal risk. Risk is the likelihood that you will not have the money to live the life you want to live. Paper losses are not “risk” and neither are the gyrations of a volatile market. Long term investors have been rewarded by equity markets, but those rewards come at the price of bravery during periods of short-term uncertainty.
    Do know your history. Despite what political pundits and TV commentators would have you believe, this is not an unusually scary time to be alive. The economy continues to grow (slowly) and most quality of life statistics (crime, drug use, teen pregnancy) have been declining for years. Markets have always climbed a wall of worry, rewarding those who stay the course and punishing those who succumb to fear.
    Don’t give in to action bias. At most times and in most situations, increased effort leads to improved outcomes. Investing is that rare world where doing less actually gets you more.

    Do take responsibility. Most investors are likely to tell you that timing and returns are the biggest drivers of financial performance, but research tells another story. Research suggests that you are the best friend and the worst enemy of your own portfolio. Over the last 20 years, the market has returned roughly 8.25% per annum, but the average retail investor has kept just over 4% of those gains because of poor investment behavior.1 At times when market moves can feel haphazard, it helps to remember who is really in charge.
    Don’t focus on the minute to minute. If you are investing in the stock market you have to think long-term. As mentioned above, you can avoid action bias by not checking your portfolio status all day every day, especially during times of higher volatility. Limited looking leads to increased feelings of security and improved decision-making.
    Do work with a professional. Odds are that when you chose your financial advisor, you selected him or her because of their academic pedigree, years of experience or a sound investment philosophy. Ironically, what you may have overlooked is the largest value he or she adds—managing your behavior. Studies put the value added from working with an advisor at 2 to 3% per year. Compound that effect over a lifetime, and the power of financial advice quickly becomes evident.
    Source: (1) Dalbar, Inc. Quantitative Analysis of Investor Behavior. Boston: Dalbar, 2015.
    Views expressed are those of Brinker Capital, Inc. and are for informational/educational purposes.  Opinions and research referring to future actions or events, such as the future financial performance of certain asset classes, indexes or market segments, are based on the current expectations and projections about future events provided by various sources, including Brinker Capital’s Investment Management Group. Information contained within may be subject to change. Diversification does not assure a profit not guarantee against a loss.
    The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Hedges Wealth Management.

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    Location: Hedges Wealth Management, 310 Seaport Ln #2121, Mt Pleasant, SC 29464, USA
    Labels: 2016 Election Financial Advice Investment Advice Investor Returns Markets portfolio Results

  2. Maximizing tax credits offered by the IRS and various states around the US is key to maximizing your financial position. There are many types of tax credits available for both individuals and businesses. One of the better ones is for angel investors in the State of SC who invest in a qualified business. Investors can attain up to 35% as a tax credit. This tax credit was created by Nikki Haley under the High Growth Small Business Creation Act, alternatively known as the Angel Investor Act on June 14, 2013.



    Let's look at the math and see why this one is so important. If you are an accredited investor in South Carolina who puts $100,000 into a qualified business like NannyPod for example, you could potentially get a 35% tax credit.

    If a company is offering a convertible note, with a minimum valuation of $2M and a maximum valuation of $5M, then the $100,000 that you put in could potentially convert to between 5% and 2% equity ownership. However, due to the 35% tax credit, you actually realize this ownership for an investment cost of $65,000.

    $100,000 x 35% = $35,000
    $100,000 - $35,000 = $65,000

    Hence, your investment of $100,000, really turns out to be an investment of $65,000.

    Now let's look at what happens when the company is sold, and you get a return on your investment. If the company you invested in does well, and has a successful exit strategy of say $50M in 5-6 years time, then your worst case scenario 2% ownership is now worth $1M. 



    If we calculate the return on $100K growing to $1M, then you made 1000%. However, if we calculate the return on $65K invested due to receiving the $35K tax credit, then you actually made 1538%, an additional 538% more.

    This clearly illustrates why maximizing tax credits can be of huge benefit, especially to angel investors in the State of SC. 


    The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Hedges Wealth Management.

    Click here for more Newsletters. Thank you.

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    If you are looking for more information on any subject in this Blog, please Contact Us directly electronically or via phone. Thank you.





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    Location: Hedges Wealth Management, 310 Seaport Ln, Mt Pleasant, SC 29464, USA
    Labels: 35% Act Angel Investor Charleston Miami Charlotte Atlanta Financial Advisor SC NC FL GA NannyPod Return SC tax credit

  3. There is no silver bullet when it comes to investing or wealth management in general… if there was, we would all be sitting on yachts and most likely not reading this article. However, there needs to be some clarity and calm on the very complex 'Brexit' subject for our US based clientele. 





    We experienced first hand the creation of Exchange Rate Mechanism (ERM), Britain's exit from the ERM, the intro of the Euro, and now the exit from the EU (aka "Brexit"). Many people travel, but those who live in places differ tremendously than those who spend two nights in a city and are up at dawn to find the next locale in a neighboring country or city. When you live somewhere, you remember far more. Having lived in the UK for over 20 years, in the USA for over 15 years, and multiple other countries like Australia, Argentina, Senegal, Italy, France and Spain, here is our first hand perspective in short… 

    • The Brexit referendum consisted various complex subjects (immigration, EU participation, grants, trade). Some voted with their emotions, some voted with their wallets...


    • Brexit now allows a potential UK Independence Day that will compete with July 4th (parody!)

    • Brexit will mean higher inflation, higher unemployment, slower growth, higher interest rates in the UK

    If you are still concerned, and require more extensive reading, please click the below link on the recent Goldman Sachs Economic Outlook. 




    Need personal financial advice? Get in touch with us instantly for an on-demand in person meeting or phone call on any financial subject matter. Just click here.



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    Labels: America Brexit Charleston Miami Charlotte Atlanta Financial Advisor SC NC FL GA EU euro Independence inflation Unemployment USA

  6. After an extremely volatile quarter, the broad equity market indexes ended just about where they started. Risk assets began the year under heavy pressure, with the S&P 500 Index declining more than -10% to a 22-month low on February 11. Concerns over the global growth outlook and the impact of further weakness in crude oil prices weighed on investors, and investor sentiment hit levels of extreme pessimism. Then we experienced a major reversal beginning on February 12, helped by a rebound in oil prices after Saudi Arabia and Russia agreed to freeze production, and more dovish comments by the Federal Reserve. Expectations regarding the pace of additional rate hikes by the Fed have been tempered from where they started the year.
    All U.S. equity sectors ended the quarter in positive territory except for healthcare and financials. Dividend paying stocks significantly outperformed, resulting in a strong quarter for both the telecom and utilities sectors, and value indexes overall. From a market capitalization perspective, mid-caps outperformed both large and small caps, helped by the strong performance of REITs, another yield-oriented asset class.
    Developed international equity markets lagged U.S. equity markets in the first quarter despite benefiting from a weaker U.S. dollar. Japan and Europe were particularly weak despite additional easing moves by their central banks, while the commodity-sensitive countries, such as Canada and Australia were positive for the quarter. Emerging markets outperformed U.S. equity markets for the quarter despite declines in China and India. Brazil was the strongest performer, helped by a rebound in the currency, expectations for political change, and the bounce in commodity prices.
    ECBBonds outperformed stocks during the quarter, and did not even decline during the risk-on rally. Additional easing from the European Central Bank and a negative interest rate policy in Japan prevented U.S. bond yields from moving higher.
    All fixed income sectors were positive for the quarter, led by corporate credit, which benefited from meaningful spread tightening, and TIPS, which benefited from their longer duration. Municipal bonds delivered positive returns, but lagged taxable fixed income.
    We remain positive on risk assets over the intermediate-term; however, we acknowledge that we are in the later innings of the bull market that began in 2009 and the second half of the business cycle. The worst equity market declines are typically associated with recessions, which are preceded by aggressive central bank tightening or accelerating inflation, factors which are not present today. While our macro outlook is biased in favor of the positives and a near-term end to the business cycle is not our base case, the risks must not be ignored.

    A number of factors we find supportive of the economy and markets over the near term.
    • Global monetary policy remains accommodative: Despite the Federal Reserve beginning to normalize monetary policy with a first rate hike in December, their approach is patient and data dependent. The Bank of Japan and the ECB have been more aggressive with easing measures in an attempt to support their economies, and China is likely going to require additional support.
    • Stable U.S. growth and tame inflation: U.S. economic growth has been modest but steady. Payroll employment growth has been solid and the unemployment rate has fallen to 5.0%. Wage growth has been tepid at best despite the tightening labor market, and reported inflation measures and inflation expectations, while off the lows, remain below the Fed’s target.
    • U.S. fiscal policy more accommodative: With the new budget fiscal policy is poised to become modestly accommodative in 2016, helping offset more restrictive monetary policy.
    • Solid backdrop for U.S. consumer: The U.S. consumer should see benefits from lower energy prices and a stronger labor market.
    However, risks facing the economy and markets remain, including:
    • Risk of policy mistake: The potential for a policy mistake by the Fed or another major central bank is a concern, and central bank communication will be key. In the U.S. the subsequent path of rates is uncertain and may not be in line with market expectations, which could lead to increased volatility. Negative interest rates are already prevalent in other developed market economies.
    • Slower global growth: Economic growth outside the U.S. is decidedly weaker, and a significant slowdown in China is a concern.
    • Another downturn in commodity prices: Oil prices have rebounded off of the recent lows and lower energy prices on the whole benefit the consumer; however, another significant leg down in prices could become destabilizing.
    • Further weakness in credit markets: While high yield credit spreads have tightened from February’s wide levels, further weakness would signal concern regarding risk assets more broadly.
    The technical backdrop of the market has improved, as have credit conditions, while the macroeconomic environment remains favorable. Investor sentiment moved from extreme pessimism levels in early 2016 back into more neutral territory. Valuations are at or slightly above historical averages, but we need to see earnings growth reaccelerate. We expect a higher level of volatility as markets assess the impact of slower global growth and actions of policymakers; however, our view on risk assets tilts positive over the near term. Higher volatility has led to attractive pockets of opportunity we can take advantage of as active managers.
    Source: Brinker Capital. Views expressed are for informational purposes only. Holdings subject to change. Not all asset classes referenced in this material may be represented in your portfolio. All investments involve risk including loss of principal. Fixed income investments are subject to interest rate and credit risk. Foreign securities involve additional risks, including foreign currency changes, political risks, foreign taxes, and different methods of accounting and financial reporting. Brinker Capital Inc., a Registered Investment Advisor.

    The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Social Security Timing.

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    If you are looking for more information on any subject in this Blog, please Contact Us directly electronically or via phone. Thank you.

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    Labels: 2016 Economic Outlook bonds Equities Financial Advisor Charleston Miami Charlotte Atlanta Global Growth interest rates S&P 500 Stock Market Outlook USA

  8. Annuities are one of the few financial products that allow financial advisors to use the word "guaranteed". There are many types of annuities, but in essence it's a contract between you and an insurance company whereby you hand them some capital, and they agree to protect your money by returning all of the capital at a later date, and or provide you a guaranteed income for life and or a guaranteed death benefit.

     Sounds like a good deal, right? The answer is that it really depends. 

    First and foremost, the guarantees are based on the sole claims paying ability of the insurance company, so you better pick a strong firm with a solid credit rating. One should not put all of their assets into annuity products (33% of your total investable assets is usually sufficient), as they're generally rather illiquid products. It's important from a financial planning perspective that you maintain liquidity with a significant amount of your portfolio in the case of large unforeseen expenses.

     Secondly, if you look at the fees in annuity products, you will notice that they're usually higher than your typical diversified more liquid investment portfolio in ETFs, mutual funds, equities and bonds. Hence, it's important to measure the benefits being offered by the insurance company, and what fees you may pay for them. Do you really need all of the annuity features? If not, scale back and save some money.

     Annuities are not all bad. They do have their advantages, especially when the markets plummet or for that peace of mind 'safety feeling'. You may decide to cash in on that return of principal guarantee while everything else is in the gutter. Or, you could choose to start taking the income for life option, which is usually a percentage based on your age. For example Nationwide offer 5.25% for a 65 year old, but an even higher 6% for a 75 year old. The main advantage here is that the income benefit base locks in during a high point over the years that you owned the product, giving you significant market downside protection. 


    One of the myths with annuities is that you don't get the money back once you have opened an account, or started taking income, or die. This truly is a myth, and it completely depends on the type of annuity (variable, fixed, deferred, immediate, index annuity etc..) in which you have invested. The right way to handle annuities is by using a professional financial advisor or wealth management firm who will give objective and accurate advice on what to do when considering annuities and which ones to use.

     Considering annuities? Get in touch with Hedges Wealth Management first. 

    The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Hedges Wealth Management LLC.

    Click here for more Newsletters. Thank you.

    Miami FL, Charleston SC, Atlanta GA, Charlotte NC - Tax, Financial Planning, Investments and Insurance.




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    Hedges Wealth Management LLC - A Registered Investment Adviser
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    If you are looking for more information on any subject in this Blog, please Contact Us directly electronically or via phone. Thank you.

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    Labels: annuities annuity Benefit Charleston Miami Charlotte Atlanta Financial Advisor SC NC FL GA death fees Good Bad Investment Guarantee income Portfolio Protection

  9. On this week’s podcast (recorded February 26, 2016), Bill Miller, CIO from Brinker Capital discusses the recent string of positive news, the hopeful outcome following the G20 Summit, and what still remains as cause for concern:

    miller_podcast_graphicWhat we like: G20 Summit underway to discuss new policies intended to help support economic growth around the world; Communist party in China soon to meet to discuss five-year plan; stock markets have rallied a bit recently
    What we don’t like: Economic data continues to be mixed; need a steadier drumbeat of good data to gain more confidence
    What we’re doing about it: Tactically speaking, we are leaning towards a more bullish stance; monitoring the stabilization of oil prices
    Click here to listen to the audio recording

    The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Holdings are subject to change. Brinker Capital, Inc., a Registered Investment Advisor.
    The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Brinker Capital.
    Click here for more Newsletters. Thank you.
    Miami FL, Charleston SC, Atlanta GA, Charlotte NC - Tax, Financial Planning, Investments and Insurance.



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    Hedges Wealth Management LLC - A Registered Investment Adviser
    Hedges Insurance Agency LLC
    Tax, Financial Planning, Investments and Insurance Advisors
    1279 Dingle Road | Mt Pleasant | SC 29466
    T  +1 843 270 2534 




     






    If you are looking for more information on any subject in this Blog, please Contact Us directly electronically or via phone. Thank you.

    Posted by
    Location: Hedges Wealth Management, 1279 Dingle Rd, Mt Pleasant, SC 29466, USA
    Labels: 2016 Economic Outlook Advice Brinker Capital Charleston Miami Charlotte Atlanta Financial Advisor SC NC FL GA Data growth Investments Oil Prices

  10. You have 5 days left until Sunday January 31st to get health insurance for 2016.

    If you miss this date, you may have to pay a penalty. Register now so that you don't miss the individual health insurance Obamacare Annual Enrollment Period (AEP).

    Avoid the government website healthcare.gov, save time and get better advice from a company like My Health Insurance USA.



    The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Hedges Insurance Agency LLC.

    Click here for more Newsletters. Thank you.

    Miami FL, Charleston SC, Atlanta GA, Charlotte NC - Tax, Financial Planning, Investments and Insurance.




    Connect and Read More About Us    

    Hedges Wealth Management LLC - A Registered Investment Adviser
    Hedges Insurance Agency LLC
    Tax, Financial Planning, Investments and Insurance Advisors
    1279 Dingle Road | Mt Pleasant | SC 29466
    T  +1 843 270 2534 




     






    If you are looking for more information on any subject in this Blog, please Contact Us directly electronically or via phone. Thank you.

    Posted by
    Location: Hedges Wealth Management, 1279 Dingle Rd, Mt Pleasant, SC 29466, USA
    Labels: AEP Best Health Insurance Advice Deadline 2016 Last Day ObamaCare Quick Health Insurance Enrollment
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