WrapManager's Wealth Management Blog

Back in 2013, we wrote about the differences between Medicare Parts A and B, as well as supplementary coverage options to help readers with their retirement planning. Given recent legislative changes to Medicare, we feel it’s time to revisit the topic. Discussing medical costs and coverage with your financial advisor is wise because medical costs can constitute a sizable portion of post-retirement budgets. As changes are made to programs like Medicare, it’s important to stay abreast of developments and integrate changes in to your wealth planning strategy. One of the difficult aspects of planning for the future is trying to anticipate unknowns such as medical costs. You never know if you’ll enjoy perfect health in the coming year or if you’ll find yourself at the doctor’s office frequently. Insurance like Medicare helps to temper the risk of the unknown, but you should still be prepared for out-of-pocket costs. [+] Read More

Brookmont Capital's Dividend Equity Strategy provides their Second Quarter report covering perspective on foreign markets, more assumptions on interest rates and how they positioned their portfolio in response.  “The markets struggled to move higher during the second quarter due to a conflux of bad news from foreign markets and earnings disappointments from several domestic companies. The markets took their biggest hit during the month of June as fears about Greece, China’s economy, and second quarter earnings announcements led to widespread sales activity.  The Dividend Equity Strategy was repositioned during the second quarter in anticipation of increasing risk in the equity markets. Valuations were becoming stretched based on expected earnings growth and consensus assumptions that the Federal Reserve will raise short-term interest rates during the second half of the year.  During the second quarter we reduced our position in mid-cap stocks by 50% and now represent only 16% of the portfolio. This is our lowest weighting in small and mid-cap stocks since early 2009. This market sector outperforms during the early stages of an economic recovery and has historically underperformed when interest rates rise and the market cycle has peaked.  [+] Read More

We recently wrote a post addressing volatility in China – in just one months’ time (mid-June to mid-July), the market there lost one third of its value.1 The wild swing in Chinese equities did not necessarily send shock waves through the global markets (which remain slightly positive on the year), but it did effectively raise eyebrows amongst investors curious if the downside volatility could be contagious. They might have a point. If you consider the ongoing Greece sovereign debt crisis, the persistent geopolitical threat posed by ISIS, concern over slowing growth rates in China, and the relative calm in the domestic equities markets (S&P 500) over the last few years, it feels like there could be an opening for increased volatility. Taking a look at the chart below, you can see that from 2012 – 2014, the market has had very few 5+% pullbacks, which draws a sharp contrast to the previous three years and to history in general. Indeed, moderate pullbacks happen frequently even in normal times. [+] Read More

Eagle Asset Management's Richard Skeppstrom provides his colorful perspective on the recent market events including Greece, China and his candid friends. “Confused situation, imperfect advice One of my closest friends reached out to me on Father’s Day to say he thinks I am a better father than stock-picker. I was touched. And then more recently, another very dear friend said he enjoyed my writing but wished I’d say something. Lovely friends. Most folks just don’t care enough to give you such thinly veiled criticisms. [+] Read More

Granite Investment Partners provides their reflections on the second quarter. Topics discussed are mixed economic data, weaker GDP growth and the question on everyone's mind, when the Fed will raise interest rates.  "Reflections Market remains little changed amidst volatility The market remained largely range-bound in the quarter and for the year. The S&P 500 index ended the quarter basically flat, gaining +0.28%, bringing year-to-date total return for the first half of 2015 to +1.23%. Investors remain in somewhat of a holding pattern as they continue to monitor signals from the Federal Reserve in anticipation of the end of the prolonged period of easy domestic monetary policy. Market consensus has shifted expectations for the first rate hike forward into September, albeit with a fair amount of uncertainty due to conflicting economic data signals. [+] Read More

China’s stock market was down over a third from mid-June to mid-July, wiping out almost $4 trillion in value. The market had risen some 150% over a year ending in June 1—so it’s actually still up from where it started in January 2—but nevertheless it has made for quite a media spectacle. [+] Read More

At WrapManager, we take your data security very seriously. With all the media coverage of data breaches in the media today, we wanted to provide information that could help reduce your risk of being compromised with a short list of suggested ways to protect yourself while still enjoying the ease of managing your life using email and the internet. Here are few things you can do to improve your cybersecurity: Consider making requests regarding your account by phone and make sure there is a verification process in place at your financial institution for withdrawal of funds; [+] Read More

Estate taxes are a hot-topic amongst both political parties and often big news when they are brought to the forefront of campaigns. While the parties battle back and forth, there are still some ways you can potentially reduce the impact of taxes on your estate. Using an estate planning checklist is a good place to start, as it helps you map out your estate planning strategy. Rather than take estate planning advice from just anyone, consider what you really want to do with your money and look for estate planning tips that are tailored to the plans, goals, and ideas you have. Here are five potential ways to lower your estate tax bill. [+] Read More

Clearbridge's Richard Freeman and Evan Bauman, provide their perspective on the second quarter discussing views on market volatility, focus sectors, and interest rates.  "Market overview and outlook U.S. stocks traded in a tight range during the second quarter, with the major indexes ending largely unchanged. The large cap S&P 500 Index gained 0.28% for the quarter, the small cap Russell 2000 Index added 0.42%, while the broad market Russell 3000 Index gained 0.14%. Volatility remained low as investors awaited a clear signal from the Federal Reserve on when it will commence raising short-term interest rates. The S&P 500 sustained its longest stretch without a 2% daily move up or down since 2007. That more than six-month stint was snapped on June 29 when the index fell 2.09% following the breakdown of talks between Greece and its creditors. The sharp drop – the largest for the S&P 500 since April 2014 – pared gains for most equity benchmarks. [+] Read More