You may have seen this chart in some form as it highlights historical asset class returns over a period of time. As we approach the start of a new year, this easy-to-understand piece is a good reminder that returns in major asset classes vary year-to-year. Instead of trying to predict the next top performer, we recommend a measured approach with a blend of various asset classes that match the risk profile of the family and client.
You have very likely heard during 2020 about the uncertainty surrounding many things – the outcome of COVID, the final election results, the unemployment picture, school closings and so on. One columnist I read is Ben Carlson (A Wealth of Common Sense) and this post is very timely as we approach some answers even though many remain unknown. If we can keep his main message (“I don’t know”) in mind as we enter the holidays and 2021, I believe we will be better served.
Have you refinanced your mortgage - if you even have one - during this low interest rate environment? Do you know someone who has? In this article, from the Hartford Funds, they outline the basic features of the world of refinancing. It acts as a quick refresher with some good-to-know stuff.
FourThoughts – Jim Butler, CFP®, AIF®