Happy New Year-
We hope this year is off to a good start for you and your family - we're looking forward to seeing what 2019 brings. There are a few important items that we want you to be aware of this year:
-2018 tax forms from Schwab will be mailed by mid-February
-The limits on 401(k), 403(b), and 457 contributions made on a pre-tax basis will be increased from $18,500 to $19,000 in 2019
-IRA contribution limits have moved up from $5,500 to $6,000 in 2019 with an additional $1,000 catch up contribution for those over 50
As an investor, it's difficult to understand what's happening in the markets, and how and why this effects your money and investments. Clearly 2018 did not follow suit with the previous 9 years of overall positive stock market returns and we'd like to give you a quick summary of how things played out. Keep in mind this is normal and investing takes time, there will always be bumps in the road and down years are to be expected.
Why did we see these market declines?
-Signs of a global economic slowdown
-Concerns about monetary policy
-Worries about increased regulation of the technology sector
What should you do?
-Keep a long term focus, investing takes time and discipline.
-Do a check-up on your overall asset allocation (blend of various stocks and stock funds, bond, cash, etc). We do our best to be sure every client is invested exactly how they should be and are happy to review your 401k or outside accounts.
-We're not concerned over a down quarter or down year, but if you are - call or email us. Our responsibility is to be sure you're making the right choices, and we're here to answer any questions you have or meet to have a discussion.