On It with Offit - November 2024

Check Out the November '24 Edition of OIWO!

NOVEMBER | 2024 Halloween Celebrations with the OA Family In October, the Offit Advisors team showed their Halloween spirit at the office with a variety of fun and unique costumes, while Ben and his family took in the trick or treat festivities in Maple Lawn. We hope you and your family had a wonderful Halloween! Offit Advisors Webinar Shares the Gift of Financial Literacy with the Next Generation  In October, Offit Advisors hosted a free special event; Essential Financial Skills for Teens & Young Adults. Check out a recording of the seminar above, and be sure share it with the young people on your life.  OA's Sophia Trakhtman Participates in EmpowHER Wealth Conference Also in October, Sophia was a sponsor and panelist at EmpowHER Wealth: Empowering Women Through Mentorship event. The event was designed to empower women to achieve their financial goals and build wealth with confidence. Ben Attends Beer, Bourbon, & Bags Event Ben attended Blossoms of Hope's Beer, Bourbon, and Bags event, to support their various missions. For a more in-depth insight into Blossoms of Hope, visit https://blossomsofhope.org. Top 10 Year-End Financial Planning Considerations As the year draws to a close, it’s important to review your financial situation to make the most of opportunities for tax savings, contributions, and long-term planning. Here are the top 10 year-end financial considerations you should be aware of: Maximize Your 401(k) Contributions If you're not already contributing enough to take full advantage of your employer’s 401(k) match, now is the time to make sure you're doing so. The match is essentially free money, and contributing to your 401(k) can reduce your taxable income, allowing your savings to grow tax-deferred. Contribute to an HSA and Use Your FSA Before It’s Too Late Health Savings Accounts (HSAs) are one of the most tax-advantaged accounts available. Contributions are tax-deductible, the funds grow tax-free, and withdrawals for medical expenses are tax-free as well. If you're eligible for an HSA, maximize your contributions. Additionally, if you have a Flexible Spending Account (FSA) through your employer, use any remaining funds before the year ends to avoid forfeiting them due to the “use it or lose it” rule. Take Advantage of Charitable Giving and Donor-Advised Funds (DAFs) Year-end giving is a great way to reduce your taxable income. If you're charitably inclined, consider donating appreciated assets such as stocks or real estate. This strategy allows you to avoid paying capital gains tax while also receiving a charitable deduction for the full value of the asset. If you plan on making significant charitable gifts, consider setting up a Donor-Advised Fund (DAF). A DAF allows you to contribute funds, receive a tax deduction in the year of contribution, and then distribute those funds to charities over time, maximizing your charitable impact. Review Your Investment Portfolio This is an ideal time to review your investment portfolio to ensure it aligns with your long-term goals. Consider rebalancing your investments and employing tax-loss harvesting to offset any capital gains. This can help reduce your overall tax liability and position your portfolio for the year ahead. Roth IRA Conversions for Low-Income Years If your income has been lower than usual this year, consider converting some or all of your traditional IRA into a Roth IRA. Paying taxes on the conversion at a lower tax bracket can set you up for tax-free growth in the future, which is a smart strategy for years with lower taxable income. Plan for Required Minimum Distributions (RMDs) If you're 73 or older, make sure you’ve calculated and withdrawn your Required Minimum Distributions (RMDs) from your retirement accounts. Failure to take RMDs can result in significant penalties, so it’s crucial to withdraw the funds before the year ends. Review Your Estate Plan Reviewing your estate plan is especially important if your life circumstances have changed. This includes updating your will, trusts, and beneficiary designations to reflect your current wishes. Any changes in your family, assets, or goals should be incorporated before the end of the year to ensure your plan is up-to-date. Review Your Tax Withholdings and Look for State-Specific Tax Benefits If you've experienced any major life changes, now is the time to check whether your tax withholding is accurate. Additionally, research any state-specific tax incentives that may apply to you, such as deductions for college savings plans or retirement contributions. Adjusting your withholding or taking advantage of state-specific deductions can help you reduce your tax burden. Review Your Debt Strategy and Insurance Coverage If you're carrying high-interest debt, consider paying it down or refinancing to improve your financial outlook for the upcoming year. Additionally, reviewing your insurance coverage, including life, auto, and health insurance, ensures that your policies meet your needs and could even help you save money. Evaluate whether additional coverage, such as disability insurance, could further protect you and your family. Plan for Next Year’s Financial Goals As the year ends, now is a good time to set clear financial goals for the upcoming year. Consider your savings targets, retirement plans, and investment strategy. Starting the year with specific goals will help you stay on track and achieve financial success. These year-end financial planning considerations offer valuable opportunities to optimize your tax strategy, improve your savings, and align your financial goals for the new year. By taking action now, you can position yourself for a successful and financially secure future. Cam McCormick, the tight end on the University of Miami’s football team, is a 26-year-old ninth-year senior who, due to an injury-plagued career, is still playing college football despite entering college in 2016. The Wall Street Journal, September 26, 2024   The American one-cent piece is the single most-produced coin in history. A conservative estimate holds that there are 240 billion pennies lying around the United States—about 724 for every man, woman, and child residing there, and enough to hand two pennies to every bewildered human born since the dawn of man. The New York Times, September 1, 2024 A U.S. storage company calculated pi to 105 trillion decimal places using supercomputers. The calculations took 75 days to complete and used up 1 million gigabytes of data. NASA scientists only need to know the first 15 decimal places of pi to understand most of the universe. LiveScience, March 15, 2024 Your parents were right—you can lose your job over what you post online. Due to a loss of confidence, a Navy commander was relieved of his duties after a photo surfaced of him using a rifle with the scope mounted backward. Morning Brew, September 8, 2024   Despite 62% of workers saying that a job offering paid time off for vacations was “extremely important” to them, just 48% of U.S. workers took all the paid time off offered. Wowledge, August 11, 2024 Danny Jansen began the major league baseball season with the Toronto Blue Jays, whose June 26 matchup with the Boston Red Sox was suspended during the second inning by rain while Jansen was at bat. When the game resumed last week, Jansen had been traded to the Red Sox, making him the first person in baseball history to play for each of the two teams during a single game. Major League Baseball, August 26, 2024   “I’m not a prude about it, but to quite an extent, gambling is a tax on ignorance.” Warren Buffett Weak Second Half of the Month Sends Stocks Lower; Bonds Struggle with Rates Moving Higher   HIGHLIGHTS: Stocks started the month strongly with the three major U.S. equity indices putting in new all-time highs – a bit of a broken record here. However, stocks paused later in the month, which ultimately led to declines for October. After a five-month winning streak, bonds fell rather sharply in October and yields surged higher. Year to date returns remained positive for most bond sectors, but October put a dent in those results. The 10-year U.S. Treasury yield ended September at 3.81% but rose to close October at 4.28%. The last 4%+ yield for the 10-year U.S. Treasury prior to October was seen in late July. The U.S. economy continued to grow with some signs of slowing, but also showed some signs of resiliency. The ISM Manufacturing Index remained below 50 in September, but the Non-Manufacturing Index rose more than expected to 54.9. Job market activity has slowed recently, but September data showed strength with over 100,000 more jobs added than expected and the unemployment rate dropping to 4.1%. October was the last month of 2024 without an FOMC meeting, and the market is still anticipating additional cuts at the final two meetings of 2024. With recent strength in economic data, the expected pace of rate cuts has slowed modestly with the expected Fed Funds target between 3.50%-3.75% by December 2025. (Per the CME FedWatch tool as of 10/31/24.) Equity Markets After the major U.S. equity indices posted new all-time highs early in the month, stocks slid lower to close out October in negative territory. Large-cap growth held up the best in what was a challenging month. See Table 1 for equity results for October 2024, year to date, and calendar year 2023.   Table 1 Index    Oct 2024    YTD    2023 S&P 500    -0.91%    20.97%    26.29% S&P 500 Equal Weight    -1.63%    13.29%    13.87% DJIA    -1.26%    12.50%    16.18% Russell 3000    -0.73%    19.75%    25.96% NASDAQ Comp.    -0.49%    21.24%    44.64% Russell 2000    -1.44%    9.56%    16.93% MSCI ACWI ex U.S.    -4.91%    8.61%    15.62% MSCI Emerging Mkts Net    -4.45%    11.66%    9.83% Source: Bloomberg For illustrative purposes only. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. As of 10/31/24 The recent broadening of the stock market that occurred in the third quarter paused as large-cap growth had better relative results in October, but those results were still negative. After such a strong run in stocks, seeing a modest pause in gains is not unexpected and year-to-date results are still very strong. Emerging markets had some of the best monthly results in September, advancing over 6.6%, but posted some of the worst monthly results in October, ending down almost 4.5%. International stocks in general struggled as well in October as the MSCI ACWI ex US lost nearly 5%, which pushed year-to-date returns back to single digits. Small-caps, despite some impressive returns in the third quarter, dropped in October and they too fell back to single-digit returns year to date. Despite weakness in October, stocks have enjoyed solid gains in 2024 led by large-caps and growth, but with broad participation in U.S. equities. International stocks have lagged the U.S., repeating a pattern of recent years. Fixed Income After hitting the highest level of the year in April, the 10-year U.S. Treasury yield declined for five months setting up a better backdrop for bonds. However, in October, the 10-year yield rose to its highest level since the summer. The 10-year U.S. Treasury yield ended September at 3.81%, but rose to close October at 4.28%. This sharp rise in yields put pressure on bond prices during the month and returns struggled. Once again, the area that stood out was high-yield bonds, which only fell marginally as they are less interest rate sensitive compared to other areas of the bond market. See Table 2 for fixed income index returns for October 2024, year to date, and calendar year 2023. Table 2 Index    Oct 2024    YTD    2023 Bloomberg U.S. Agg    -2.48%    1.86%    5.53% Bloomberg U.S. Credit    -2.41%    2.69%    8.18% Bloomberg U.S. High Yld    -0.54%    7.42%    13.44% Bloomberg Muni    -1.46%    0.81%    6.40% Bloomberg 30-year U.S. TSY    -5.42%    -4.07%    1.93% Bloomberg U.S. TSY    -2.38%    1.36%    4.05% Source: Bloomberg For illustrative purposes only. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. Declines in October had a significant impact on the overall year-to-date results for most bond sectors. The more rate sensitive sectors (like 30-year U.S. Treasuries) were hit hardest by this jump in rates. High yield bonds have had a steadier run this year as they often follow what is happening with stocks, and they have been the leaders in 2024 for the bond market. At the start of the year, we said we thought the 10-year U.S. Treasury yield would be in a range between 3.25% and 4.5% in 2024 (acknowledging that we got above that level in April). The trend in rates was lower since those April highs but that reversed in October. We believe Fed rate cuts will impact the front end of the yield curve more dramatically, but that the general trend will be for rates to move lower. We continue to anticipate elevated volatility in bonds as we move through the election and the market adjusts to the pace of the Fed rate cut cycle as it develops. We maintain our long-standing position favoring credit versus pure rate exposure in this interest rate environment and that has served us well so far in 2024. We also believe the role bonds play in a portfolio, to provide stable cash flow and to help offset the volatility of stocks in the long run, has not changed. Furthermore, we believe that bond yields remain attractive, and we believe we are seeing some of the best bond yields in years. The move higher in rates in October only adds to that thinking. In our opinion, having an active bond management approach makes sense in these volatile times. S&P 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. You cannot directly invest in the index. Dow Jones Industrial Average - The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.  NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. Today the NASDAQ Composite includes approximately 5,000 stocks, more than most other stock market indices. Because it is so broad-based, the Composite is one of the most widely followed and quoted major market indices. Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index which includes the 3,000 largest companies in the U.S., based on market capitalization. As of the latest reconstitution, the average market capitalization was approximately $762.8 million; the median market capitalization was approximately $613.5 million. The largest company in the index had an approximate market capitalization of $2.0 billion and a smallest of 218.4 million.  Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.  Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.  Government bonds are guaranteed by the U. S. Government and, if held to maturity, offer a fixed rate of return and fixed principal value. Miracle Mile Advisors LLC (“MMA”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where MMA and its representatives are properly licensed or exempt from licensure. The information is illustrative, and is provided for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor. The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward‐looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur. All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. All investments include a risk of loss that clients should be prepared to bear. The principal risks of MMA's strategies are disclosed in the publicly available Form ADV Part 2A. Past performance shown is not indicative of future results, which could differ substantially. This message is confidential and subject to terms at: https://miraclemileadvisors.com/disclosures/ including on awards/rankings, confidentiality, legal privilege, viruses and monitoring of electronic messages. If you are not the intended recipient, please delete this message and notify the sender immediately. Any unauthorized use is strictly prohibited. 6990 Columbia Gateway Drive Suite 150 Columbia, MD 21046, US Phone + Fax:  410 600 PLAN (7526) E – Office@OffitAdvisors.com W- www.OffitAdvisors.com   To schedule an appointment with us, click here! You can update your preferences or unsubscribe from this list.

On It with Offit - October 2024

Check Out the October '24 Edition of OIWO!

OCTOBER | 2024 The Future of Social Security; Ben Debunks Common Misconceptions and Takes a Look at What's Ahead Click above to watch this video.   Ben takes a look at this critical pillar of America's social safety net, and sets the record straight on the state of Social Security. Offit Advisors Partners with Miracle Mile Advisors Offit Advisors Founder & CEO Ben Offit Discusses a new partnership between OA and Miracle Mile Advisors. We are excited for this partnership and our expanded capabilities to bring to clients within financial planning, tax, risk management, estate, asset protection, and charitable planning.  This will also give us a wider range of investment solutions, technology, and increased back-office support and it will enhance our Fiduciary commitment to all of our clients.    Watch more in this video with Offit Advisors Founder & CEO Ben Offit - https://youtu.be/Qc-ZuQvGueM Black Diamond Live Webinar - Save the Date! As part of our partnership with Miracle Mile, we are transitioning to using Black Diamond as our investment portal.  We will be hosting a live webinar on Thursday, November 21st, at 5 PM to review this together.  We will send a link soon. Attention Business Owners! Important Information About the Corporate Transparency Act All corporations, limited liability companies and other business entities that were created by a filing with a secretary of state or a similar office to create the entity or, for foreign companies, need to do this to register to do business in the United States. Take action before the year is over by using this link Register Your Business OA's Sophia Trakhtman Chronicled in Important Article by The Associated Sophia Trakhtman: Finding Meaning Through Giving Back Sophia Trakhtman has always known what it means to be Jewish. Born to two immigrants from the Soviet Union, she grew up hearing stories of religious persecution and knowing how fortunate she was to be able to freely express her beliefs in the United States. But despite her heritage, Sophia didn’t fully connect with Jewish culture and community until high school, when she started growing her circle of Jewish peers and discovered her love for volunteering and community action. Now, she’s a proud member of The Associated’s Young Adult Division Volunteer Committee and looks forward to making positive change in the Baltimore Jewish community... Read More Amid ongoing competition with the United States, China experienced a major setback earlier this year when its secret nuclear submarine sank immediately after being launched. Futurism, September 26, 2024   Seniors are frequent victims of financial fraud, and for every one reported case of elder abuse, 24 others go unreported. According to a study cited by the National Center on Elder Abuse, The study pegs the annual losses from elder financial abuse at $28.3 billion. Barron’s, June 14, 2024 Traffic stops are the most common way Americans encounter police officers, with nearly 50,000 motorists being pulled over every day. Findings, September 10, 2024   Venezuelan strongman President Nicolás Maduro-keen to distract Venezuelans from his rigging of July elections, ongoing crackdown, and the nation’s economic collapse-decreed that Christmas will start Oct 1 this year “in peace, joy, and security!” Global News, September 4, 2024   Due to their perceived return on investment, 35% of the more than 11,000 college graduates surveyed by the Federal Reserve in 2023 said they wished they had chosen a different area of study. Morning Brew, September 15, 2024   A stunning 33% of voters believe we’re in a recession. Axios, September 19, 2024   “There’s an old saying in Arkansas that you don’t learn nothing the second time you get kicked in the head by a mule.” Rep. Steve Womack Stocks Rebound from Weak September Start to End Month and Quarter Higher Highlights The three major U.S. stock indices put in new all-time highs during the third quarter with September culminating in broad equity gains. Large-cap growth companies, as measured by the NASDAQ Composite, peaked in July but enjoyed some momentum to close out the quarter. Bonds had gains for the fifth month in a row as rates continued to move lower during the month and hit the lowest level of 2024. The 10-year U.S. Treasury yield ended August at 3.91% and closed September at 3.81%. The U.S. economy continued to grow but showed some evidence of slowing economic activity. The ISM manufacturing index remained below 50 in August, but the non-manufacturing index ticked modestly higher to 51.5. Job market activity has slowed, but housing had a bit of a bump higher with the recent decline in rates. Fed Chairman Powell kicked off the rate-cutting cycle in September with a 50 basis point cut – the first rate cut since 2020. According to the CME FedWatch tool, odds favor 3 more cuts in 2024 with 2 FOMC meetings remaining. Equity Markets The month started off volatile for stocks, but not to the same degree as August. However, as the month progressed, stocks rebounded and turned in solid monthly gains. September closed out a strong quarter and first 9 months of 2024 for stocks. See Table 1 for equity results for September 2024, Q3 2024, year to date (YTD) and calendar year 2023. Table 1 Index    Sept 2024    Q3 2024    YTD    2023 S&P 500    2.14%    5.89%    22.08%    26.29% S&P 500 Equal Weight    2.34%    9.60%    15.16%    13.87% DJIA    1.96%    8.72%    13.93%    16.18% Russell 3000    2.07%    6.23%    20.63%    25.96% NASDAQ Comp.    2.76%    2.76%    21.84%    44.64% Russell 2000    0.70%    9.27%    11.17%    16.93% MSCI ACWI ex U.S.    2.69%    8.06%    14.21%    15.62% MSCI Emerging Mkts Net    6.68%    8.72%    16.86%    9.83%   Source: Bloomberg For illustrative purposes only. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. The recent broadening of the market shows up clearly in the quarterly numbers. September had more of the large-cap leadership we have seen so often, but the quarter saw a broadening into small and mid-caps, as well as value and international companies relative to large-cap growth. We have often discussed the difference between the returns of the headline, market-cap-weighted S&P 500 Index compared to the equal-weighted version of the same stocks, which is more reflective of what the “average” stock is doing. The returns of these two measures were relatively in-line with each other in September, but the quarter shows a clear shift to the equal weighted index while YTD performance still shows the market-cap weighted index in the lead. The “average” stock had a better run in Q3, but large-caps still lead year to date. The NASDAQ stands out with one of the the best domestic index returns in September, but that accounted for all its returns for the quarter. It still shows impressive results YTD, but the gap narrowed considerably with its relative underperformance in Q3. Large-cap value lagged in September compared to growth, with one example being the Russell 1000 Value Index up 1.39% for the month, while the Russell 1000 Growth Index gained 2.83%. For the quarter, however, those returns were 9.43% and 3.19%, respectively, as value outperformed. Year to date, the index returns flipped again with the value version up 16.68% and the growth index gaining 24.55%. So, the market has seen a broadening of late, but large-cap growth still leads so far this year. Emerging markets had some of the strongest monthly results, advancing over 6.6%. International stocks in general have also enjoyed the recent broadening in the market with solid quarterly and YTD results that rival some of the U.S. equity indices. The first 9 months of 2024 have been very strong for equity markets following a strong year of returns in 2023. Fixed Income After hitting the highest level of the year in April, the 10-year U.S. Treasury yield has declined for the last five months. In September, the 10-year yield hit a new low for 2024. This move lower in rates has helped set up generally positive returns for bonds during the period. Most bond sectors were able to push into positive territory after gains in July and additional gains have been added over the last two months. The 10-year U.S Treasury yield ended July at 4.09%. On August 1, the yield closed below 4% for the first time since February and it ended September at 3.81%. See Table 2 for fixed income index returns for September 2024, Q3 2024, YTD, and calendar year 2023. Table 2 Index    Sept 2024    Q3 2024    YTD    2023 Bloomberg U.S. Agg    1.34%    5.20%    4.45%    5.53% Bloomberg U.S. Credit    1.71%    5.71%    5.23%    8.18% Bloomberg U.S. High Yld    1.62%    5.28%    8.00%    13.44% Bloomberg Muni    0.99%    2.71%    2.30%    6.40% Bloomberg 30-year U.S. TSY    1.93%    8.12%    1.42%    1.93% Bloomberg U.S. TSY    1.20%    4.74%    3.84%    4.05%   Source: Bloomberg For illustrative purposes only. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. It is apparent that, outside of high yield, all of the YTD returns for these major bond indices have occurred in the last three months. This has coincided with the drop in interest rates and those more rate sensitive sectors (like 30-year U.S. Treasuries) have had the strongest recent results. However, they also struggled more at the beginning of the year. High yield bonds have had a steadier run this year as they often follow the stock market, so they have enjoyed gains throughout 2024. At the start of the year, we said we believed the 10-year U.S. Treasury yield would be in a range between 3.25% and 4.5% in 2024 (acknowledging that we got above that level in April). The trend in rates has been lower since those April highs, and we believe rates will continue to decline as the Fed begins a rate cutting cycle. We also believe Fed action will impact the front end of the yield curve more dramatically, but that the general trend will be for rates to move lower. We maintain our long-standing position favoring credit versus pure rate exposure in this interest rate environment and that has served us well so far in 2024. We also believe the role bonds play in a portfolio, to provide stable cash flow and to help offset the volatility of stocks in the long run, has not changed. Furthermore, we believe that bond yields remain attractive, and we are seeing some of the best bond yields in years. In our opinion, having an active bond management approach makes sense in these volatile times. S&P 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. You cannot directly invest in the index. Dow Jones Industrial Average - The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.  NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. Today the NASDAQ Composite includes approximately 5,000 stocks, more than most other stock market indices. Because it is so broad-based, the Composite is one of the most widely followed and quoted major market indices. Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index which includes the 3,000 largest companies in the U.S., based on market capitalization. As of the latest reconstitution, the average market capitalization was approximately $762.8 million; the median market capitalization was approximately $613.5 million. The largest company in the index had an approximate market capitalization of $2.0 billion and a smallest of 218.4 million.  Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.  Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.  Government bonds are guaranteed by the U. S. Government and, if held to maturity, offer a fixed rate of return and fixed principal value. Miracle Mile Advisors LLC (“MMA”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where MMA and its representatives are properly licensed or exempt from licensure. The information is illustrative, and is provided for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor. The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward‐looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur. All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. All investments include a risk of loss that clients should be prepared to bear. The principal risks of MMA's strategies are disclosed in the publicly available Form ADV Part 2A. Past performance shown is not indicative of future results, which could differ substantially. This message is confidential and subject to terms at: https://miraclemileadvisors.com/disclosures/ including on awards/rankings, confidentiality, legal privilege, viruses and monitoring of electronic messages. If you are not the intended recipient, please delete this message and notify the sender immediately. Any unauthorized use is strictly prohibited. 6990 Columbia Gateway Drive Suite 150 Columbia, MD 21046, US Phone + Fax:  410 600 PLAN (7526) E – Office@OffitAdvisors.com W- www.OffitAdvisors.com   To schedule an appointment with us, click here! The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.

On It with Offit - September 2024

Check Out the September '24 Edition of OIWO!

SEPTEMBER | 2024 We feel really comfortable with you and your team and trust your judgment completely.  – Paul and Susan The testimonials presented are made by individuals who are clients of Offit Advisors and are applicable only to the individuals depicted and may not be representative of the experience of others. The testimonials are not paid nor have the participants received any non-cash compensation and are not indicative of future performance or success. The testimonials have been evaluated for conflicts of interest and have not been found to present any conflicts. Meeting Local Celebrities! September brought a personal thrill Ben's way, as he was able to meet two of his heroes. First, Ben connected with University of Maryland alum and Under Armour CEO and Founder Kevin Plank at a Terrapins football game. Ben was an a Business and Entrepreneurship major at College Park, and Kevin's incredible journey with UA inspired a wave of entrepreneurs at UMD. Kevin was extremely gracious, and particularly loved meeting Ben's son Nate at the game. It got even better later in the month when Ben got the chance to meet Baltimore Orioles legend and Major League Baseball Hall of Famer Cal Ripken Jr. at his charitable event in Annapolis. Ben told "The Ironman" how much he treasures the baseball glove Cal signed for him when he was a kid, a glove he still has framed today.  And he was even kind enough to sign a book about his life that Ben reads with his kids at night before bed; A book the boys love! OA to Host October Financial Literacy Event for Teens and Young Adults We are committed to bringing financial literacy to the next generation. Next month, Offit Advisors will host a free special event; Essential Financial Skills for Teens & Young Adults.  This event will be held both in person and virtually, so please be sure to share with your family, extended family, and friends.  It's not too late to get registered. Click the link below to sign up! Register Now Important Information about Maryland Saves Program for Maryland Employers  This is a reminder to Maryland Business owners that registering for Maryland Saves must be done annually in order to receive the $300 SDAT waiver. that Maryland Saves is a program is for employers who have a retirement program in place for their employees.  The deadline to complete registration for the 2025 SDAT Annual Report Filing Fee is December 31, 2024. Click the link below to claim your waiver. Click Here to Claim Your Wavier Learn More About Maryland Saves OA Team Travels Earlier this month. Zach traveled to Peru; His first visit to South America. Zach immersed himself in Peru's rich culture and learned about the history of the country. Highlights of the his trip included exploring the awe-inspiring Machu Picchu, hiking Machu Picchu Mountain, participating in a traditional cooking class, and attending a textile demonstration. Zach also visited Peru's fascinating salt mines, and had the privilege of connecting with local communities while experiencing the welcoming culture and authenticity of the Peruvian people. What's "Normal" for the Stock Market? Stock market behavior can be confusing, especially with calm periods followed by sudden volatility. Many investors wonder: what’s normal for the stock market? Let’s explore key patterns, risks, and strategies to better understand this. Volatility is Normal Market volatility—the frequent rise and fall of stock prices—is part of the stock markets's natural cycle. For instance, in 2024, the year began with steady growth, but a sharp drop in August caused widespread concern. While alarming, this kind of volatility is common. Historically, stock market corrections (a decline of 10% or more) happen every 12 to 18 months. The average correction is around 14%, so a downturn of several thousand points in major indexes is typical, though it may seem unsettling. Look at 2020 during the COVID-19 pandemic, or the 2008 financial crisis—both were periods of significant market declines followed by recoveries. Volatility, while stressful, is part of a healthy market cycle. Not All Risk is Rewarded A common misconception is that higher risk always equals higher reward. In reality, not all risk pays off. For example, investing heavily in one stock or a highly speculative sector can lead to large losses. Take Enron as an example—investors who were overly concentrated in the company lost everything when it collapsed due to unethical practices. Risk without proper diversification often leads to poor outcomes. On the other hand, smart, calculated risks tend to offer better results over time. A diversified portfolio that spreads investments across various asset classes (stocks, bonds, real estate) can manage risk effectively. For example, during market downturns, bonds may outperform stocks, balancing your portfolio’s overall performance. Diversification: A Key Strategy Diversifying your investments is one of the best ways to reduce risk while aiming for solid returns. For instance, if you invested in both Apple and Nvidia in recent years, you’d benefit from their growth. But if you were overly concentrated in just one and it faltered, your losses would be more significant. Spreading investments across different sectors or asset types limits the damage from any single poor performer. It’s also important to note that about two-thirds of individual stocks underperform the broader market. By diversifying, you protect yourself from the risk of underperformance in a small number of companies. Understanding Unrewarded Risks Some risks simply aren’t worth taking. Speculative investments in assets like meme stocks or NFTs (non-fungible tokens) may seem appealing due to social media hype, but they often underperform or collapse. In recent years, many speculative assets, such as SPACs (special purpose acquisition companies), have lost substantial value—some dropping by 70-100%. These investments are highly risky and rarely offer long-term success compared to traditional, diversified portfolios. Volatility: The Price of Long-Term Growth While volatility can be unsettling, it’s the price investors pay for higher long-term returns. If markets were perfectly stable, there would be no reward for taking risks. Investors who can tolerate volatility tend to be rewarded. Consider the 2008 financial crisis—many investors panicked and sold, but those who stayed invested or bought more during the downturn saw significant gains as the market recovered. Short-term market fluctuations aren’t a reason to panic. If you’re in a diversified portfolio, volatility is an opportunity rather than a threat. Staying calm and maintaining a long-term perspective allows you to benefit from the natural ups and downs of the market. Conclusion In summary, volatility is normal in the stock market, and corrections are a healthy part of its cycle. Not all risks lead to rewards, so intelligent investing through diversification is key. By understanding and accepting volatility, you can position yourself for long-term success. Embrace market fluctuations as part of the investment journey and stay focused on your long-term goals. In 2023, some 80% of consumers said they got interested in a product or service through an influencer’s post. Now, Artificial Intelligence influencers are appearing on the scene. Polling shows that Gen Z, the target demographic for influencer marketing, doesn’t care if the influencers are real or fake. Axios Am, September 7, 2024   The American one-cent piece is the single most-produced coin in history. A conservative estimate holds that there are 240 billion pennies lying around the United States—about 724 for every man, woman, and child residing there, and enough to hand two pennies to every bewildered human born since the dawn of man. The New York Times, September 1, 2024 A U.S. storage company calculated pi to 105 trillion decimal places using supercomputers. The calculations took 75 days to complete and used up 1 million gigabytes of data. NASA scientists only need to know the first 15 decimal places of pi to understand most of the universe. LiveScience, March 15, 2024 The average American now eats about 42 pounds of cheese a year, more than all the butter, ice cream, and yogurt combined. Bloomberg, September 6, 2024   The Fed’s balance sheet is over 20% below its peak from April 2022. That’s the largest drawdown on record. The Week in Charts, September 3, 2024   Your parents were right—you can lose your job over what you post online. Due to a loss of confidence, a Navy commander was relieved of his duties after a photo surfaced of him using a rifle with the scope mounted backward. Morning Brew, September 8, 2024   Work is most fulfilling when you’re at the comfortable, exciting edge of not quite knowing what you’re doing.” Alain de Botton Mixed Month for Stocks, but Bonds Advance in August Highlights The broad indices were able to overcome a very rough start to the month with the S&P 500 Index closing August higher. Small and mid-cap stocks declined in August, while large-caps advanced. Bonds enjoyed gains for the fourth month in a row as rates continued to move lower. The 10-year U.S. Treasury yield ended July at 4.09% and it dropped to end August at 3.91%, hitting its lowest closing yield of the year (3.78%) during the month. The U.S. economy continued to show slowing economic activity. The ISM Manufacturing Index remained below 50 in July, but the Non-Manufacturing index bounced back to 51.4. The unemployment rate rose unexpectedly to 4.3% and helped spark a weak beginning to the month for equities. There was no FOMC meeting in August, but Fed Chairman Powell’s widely anticipated speech at Jackson Hole, Wyoming more-or-less secured the idea of a rate cut in September. The only debate (from a fed futures perspective based on the CME FedWatch tool) is whether the cut will be 25 or 50 basis points with the odds favoring a cut of 25 basis points as of early September. Equity Markets The month started off volatile for stocks. By early August, the S&P 500 had declined by about -8.5% from its recent high in mid-July. However, the panic seemed unwarranted at the time with fundamentals still solid. Markets steadily rebounded from that point for the rest of the month to turn in a positive gain for August. See Table 1 for equity results for August 2024, YTD and calendar year 2023.   Table 1 Index    Aug 2024    YTD    2023 S&P 500    2.43%    19.53%    26.29% S&P 500 Equal Weight    2.50%    12.53%    13.87% DJIA    2.03%    11.75%    16.18% Russell 3000    2.18%    18.19%    25.96% NASDAQ Comp.    0.74%    18.57%    44.64% Russell 2000    -1.49%    10.39%    16.93% MSCI ACWI ex U.S.    2.85%    11.22%    15.62% MSCI Emerging Mkts Net    1.61%    9.55%    9.83%   Source: Bloomberg For illustrative purposes only. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. The recent broadening of the market continued in August. Although the month was marked by large-cap strength once again, large-cap value companies outpaced their growth counterparts. Outside of small-caps, the NASDAQ Composite had the weakest results for the month. The leadership of large-cap growth still holds for the year to date, but small-caps, value stocks, and international companies have narrowed the gap in recent months. We have often discussed the difference between the returns of the headline, market-cap-weighted S&P 500 Index compared to the equal-weighted version of the same stocks, which is more reflective of what the “average” stock is doing. The returns of these two measures were relatively in-line with each other in August, showing broader participation in the market. The “average” stock had a better run in July and August, but large-caps still lead year to date. The same holds true that value stocks have had a better run in the last two months. Large value outperformed in July with one example being the Russell 1000 Value Index up 5.11% in July while the Russell 1000 Growth Index declined -1.70%. In August, those returns were 2.68% and 2.08% respectively as value progress continued. Developed markets advanced and continue to show solid results so far this year, and emerging markets advanced as well, but not to the same degree. Emerging markets are the only index shown on Table 1 without a double-digit gain so far this year. Despite some volatility in August, and some potential volatility as we head towards the election, 2024 has been a strong year for equities to this point. Fixed Income After hitting the highest level of the year in April, the 10-year U.S. Treasury yield has declined for the last four months. In August, the 10-year yield hit a new low for 2024. This move lower in rates has helped set up generally positive returns for bonds during this period. Most bond sectors were able to push into positive territory after gains in July and additional gains were added in August. The 10-year U.S Treasury yield ended July at 4.09%. On August 1, the yield closed below 4% for the first time since February and it ended the month at 3.91%. See Table 2 for fixed income index returns for August 2024, year to date, and calendar year 2023.   Table 2 Index    Aug 2024    YTD    2023 Bloomberg U.S. Agg    1.44%    3.07%    5.53% Bloomberg U.S. Credit    1.55%    3.46%    8.18% Bloomberg U.S. High Yld    1.63%    6.29%    13.44% Bloomberg Muni    0.79%    1.30%    6.40% Bloomberg 30-year U.S. TSY    2.35%    -0.49%    1.93% Bloomberg U.S. TSY    1.28%    2.60%    4.05%   Source: Bloomberg. For illustrative purposes only. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. The more rate-sensitive sectors (like longer-dated U.S. Treasuries) showed the best results in August as rates continued to drop, but the 30-year U.S. Treasury Index is still negative so far this year. High yield bonds often follow what is happening with stocks, so they posted another solid month of gains in August and have the best results of the bond indices year to date. At the start of the year, we said we thought the 10-year U.S. Treasury yield would be in a range between 3.25% and 4.5% in 2024 (acknowledging that we got above that level in April). The trend in rates has been lower since those April highs, and we believe rates will continue to decline through the second half of this year. Furthermore, as the Fed likely begins to cut rates in September, we believe front end rates could start to decline rather dramatically after remaining stubbornly high so far this year. We maintain our long-standing position favoring credit versus pure rate exposure in this interest rate environment. We also believe the role bonds play in a portfolio, to provide stable cash flow and to help offset the volatility of stocks in the long run, has not changed. Furthermore, we believe that bond yields remain attractive, and we are seeing some of the best bond yields in years. In our opinion, having an active bond management approach makes sense in these volatile times. S&P 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. You cannot directly invest in the index. Dow Jones Industrial Average - The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.  NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. Today the NASDAQ Composite includes approximately 5,000 stocks, more than most other stock market indices. Because it is so broad-based, the Composite is one of the most widely followed and quoted major market indices. Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index which includes the 3,000 largest companies in the U.S., based on market capitalization. As of the latest reconstitution, the average market capitalization was approximately $762.8 million; the median market capitalization was approximately $613.5 million. The largest company in the index had an approximate market capitalization of $2.0 billion and a smallest of 218.4 million.  Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.  Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.  Government bonds are guaranteed by the U. S. Government and, if held to maturity, offer a fixed rate of return and fixed principal value. Securities offered through Kestra Investment Services, LLC (Kestra IS), Member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Offit Advisors is not affiliated with Kestra IS or Kestra AS. Offit Advisory Services, LLC is a tax firm but neither Kestra IS nor Kestra AS provide legal or tax advice and are not Certified Public Accounting firms.For more information on the Five Star Wealth Manager and the research/selection methodology go to: www.fivestarprofessional.com. Investor Disclosures: https://bit.ly/KF-Disclosures 6990 Columbia Gateway Drive Suite 150 Columbia, MD 21046, US Phone + Fax:  410 600 PLAN (7526) E – Office@OffitAdvisors.com W- www.OffitAdvisors.com   To schedule an appointment with us, click here! The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.

On It with Offit - August 2024

Check Out the August '24 Edition of OIWO!

AUGUST | 2024 Offit Advisors to Host Financial Literacy Event for Teens and Young Adults on October 15th We are excited to announce that we are hosting an educational event to provide teens and young adults with essential financial literacy and investment knowledge.   This event aims to equip participants with the tools and understanding necessary to make informed financial decisions as they grow older. Topics will include: Basics of budgeting and saving Understanding credit and managing debt Introduction to investing and the stock market Long-term financial planning and goal-setting We believe that fostering financial literacy at a young age is crucial for future success and stability. Ben is the best financial advisor I have ever had and I really appreciate his thoroughness.  I would give him 5 stars. – Marie The testimonial presented is made by an individual who is a client of Offit Advisors and is applicable only to the individuals depicted and may not be representative of the experience of others. The testimonial is not paid nor have the participants received any non-cash compensation and is not indicative of future performance or success. The testimonial has been evaluated for conflicts of interest and has not been found to present any conflicts. Important Tax Information Regarding the Maryland Student Loan Tax Credit The Maryland Student Loan Tax Credit application deadline is Sunday, September 15th! If you are interested in applying, please visit the link below. Click Here to Apply OA Team Travels Offit Advisors Financial Advisors Laura Sendldorfer went to Iceland over the summer, and also traveled to her native Germany to visit family.  She described Iceland and some parts of it like “being on the moon”! Did you Know? August is "Make a Will Month" That's right; "Make a Will Month" is observed in August. It's a time dedicated to raising awareness about the importance of having a will, and an opportunity to encourage individuals to either create one or update their existing will to ensure their wishes are clearly outlined and legally protected. This observance highlights the significance of estate planning and making sure loved ones are taken care of according to one’s intentions.   Importance of Having Estate Planning Documents Control Over Asset Distribution: Estate planning documents, such as wills and trusts, allow you to specify how your assets will be distributed after your death, ensuring that your wishes are followed. Without a will, your estate may be distributed according to state laws, which may not align with your preferences. Minimization of Taxes and Fees: Proper estate planning can help reduce estate taxes, probate costs, and other fees, preserving more of your assets for your beneficiaries. Protection of Beneficiaries: Estate planning allows you to appoint guardians for minor children and create trusts to manage assets for beneficiaries who may not be capable of managing their inheritance responsibly. Avoidance of Family Conflicts: Clear estate planning documents can prevent disputes among family members by clearly outlining your wishes and reducing the likelihood of legal challenges. Healthcare and Financial Decisions: Documents such as a durable power of attorney and healthcare directives allow you to designate individuals to make financial and medical decisions on your behalf if you become incapacitated. Business Continuity: For business owners, estate planning is crucial to ensure the smooth transition or continuation of the business after death or incapacitation. Peace of Mind: Having a comprehensive estate plan in place provides peace of mind, knowing that your affairs are in order and your loved ones will be cared for according to your wishes. Considerations When Drafting Estate Planning Documents Inventory of Assets: Compile a detailed list of all your assets, including real estate, investments, retirement accounts, insurance policies, and personal belongings. Beneficiary Designations: Review and update beneficiary designations on retirement accounts, life insurance policies, and other financial accounts to ensure they align with your estate plan. Choice of Executor and Trustees: Select a trustworthy and capable executor to carry out your will, and consider appointing trustees for any trusts you establish. Guardianship for Minors: If you have minor children, designate a guardian who will take care of them if both parents are deceased or incapacitated. Healthcare Directives: Prepare advance directives, such as a living will and healthcare proxy, to ensure your medical care preferences are followed if you are unable to communicate them. Durable Power of Attorney: Assign a durable power of attorney to handle financial matters on your behalf if you become incapacitated. Trusts: Consider setting up trusts to manage and protect assets for your beneficiaries, particularly if you have special considerations, such as caring for a disabled family member. Tax Implications: Consult with a tax advisor to understand the potential tax consequences of your estate plan and explore strategies to minimize taxes. Regular Updates: Review and update your estate planning documents periodically, especially after major life events such as marriage, divorce, the birth of a child, or significant changes in your financial situation. Legal and Professional Advice: Work with an estate planning attorney and financial advisor to ensure that your documents are legally sound and that your estate plan is comprehensive and up to date. Giving Together; A Family's Guide to Making a Difference Giving is a powerful way to teach your family about empathy, kindness, and the value of making a difference. By giving together, you can create a sense of purpose and belonging, and inspire a lifelong commitment to philanthropy. Start with a Family Mission Statement Take some time to talk with your family about what matters most to you. What causes do you care about? What values do you want to pass down to your kids? Write down your thoughts and create a simple mission statement, like: "Our family believes in helping those in need, supporting education, and protecting the environment." Choose Charities Together Pick a few charities that align with your mission statement. You can choose ones that support a specific cause, like: St. Jude Children's Research Hospital for medical research The Nature Conservancy for environmental protection DonorsChoose for education Make Giving a Family Affair Involve your kids in the giving process! Let them help with: Researching charities Deciding how much to give Writing checks or making online donations Volunteering time together Teach Kids About Investing and Lifetime Giving When it comes to teaching kids about investing, consider a Roth IRA and the power of lifetime giving. Lifetime giving allows you to make a positive impact while you're still alive, and: See the difference your donations make firsthand Participate in the giving process with your children Help your kids develop a sense of empathy and social responsibility Make a more significant impact now, when your donations are needed most Open a Roth IRA for your teenager and contribute to it each year. This teaches them about saving, investing, and retirement planning, while also allowing them to contribute to charitable causes. Benefits of Lifetime Giving Lifetime giving offers numerous benefits, including: Immediate impact: Your donations can address pressing needs and make a tangible difference in the lives of others. Personal connection: You can engage with the causes and organizations you support, fostering a deeper sense of purpose and fulfillment. Family bonding: Involving your children in the giving process can create shared values and strengthen family relationships. Tax benefits: Lifetime giving can provide tax advantages, such as deductions for charitable donations. Make it Fun! Giving should be enjoyable! Make it a game, a challenge, or a fun activity, like: "Giving Tuesdays" where you donate to a different charity each week A "charity jar" where family members add spare change A volunteer day where you work together at a local nonprofit Conclusion Giving together as a family is a powerful way to create a sense of purpose, empathy, and kindness. By starting with a mission statement, choosing charities together, making giving a family affair, teaching kids about investing and lifetime giving, and making it fun, you can inspire a lifelong commitment to philanthropy and make a real difference in the world. September is normally terrible for the stock market in the first three years of the presidential cycle. In September, the Dow averages a loss of 1.5%. But in the President’s fourth year, September produces an average gain of 0.2%. MarketWatch, August 3, 2024   In August of 1896 the Dow Jones Industrial Average, less than three months old, hit the lowest level ever recorded: 28.48, down 30.5% in just 10 weeks. The Wall Street Journal, Markets AM, August 8, 2024   Jeremy Green Eche of Brooklyn, NY buys and saves domain names for hypothetical presidential tickets. Last Tuesday, Aug 6th, he sold HarrisWalz.com for $15,000 to an anonymous buyer who was unconnected to either campaign. NPR, August 7, 2024   On July 16, the Russell 2000 closed 4.42 standard deviations above its 50-day moving average. This was true not only for the Russell but for all major U.S. indices (S&P 500, DJIA, Nasdaq, and Russell 2000), it is the most overbought reading in history. Yahoo!Finance, July 23, 2024   Over the last 30 years, the purchasing power of the U.S. consumer dollar has been cut in half due to inflation. At the same time, the S&P 500 has gained 960% (8% per year) after adjusting for inflation. The Week in Charts, August 6, 2024 According to the AP’s college football Top 25 poll, the Georgia Bulldogs are ranked #1. Since 1950, only 11 teams that started the preseason as the #1 choice went on to win the national title. AP News, August 12, 2024 “Good ideas, carried to wretched excess, become bad ideas.” Charlie Munger Rotation, Rotation! Small-Caps and Value Come to Life as Bonds Advance Highlights Equities moved higher in July, but the nature of the rally changed character. Small-caps and value stocks rallied sharply while large-cap growth struggled, and volatility rose to the highest level since April. Bonds enjoyed gains once again in July as interest rates moved lower during the month. These gains pushed several of the bond indices into positive territory year to date. The 10-year U.S. Treasury yield closed the month at 4.09% after ending June at 4.36%. The U.S. economy continued to show slowing economic activity. Both ISM indices were below 50 in July and the unemployment rate ticked unexpectedly higher to 4.1%. However, the first reading of Q2 GDP growth showed a much stronger expansion than expected at a 2.8% annualized growth rate compared to estimates of 2.0%. The FOMC meeting that concluded on the last day of July resulted in no change to policy rates. We have now gone a full year since the last rate hike in July 2023, but the groundwork is being laid for a rate cut at the next FOMC meeting in September. Equity Markets Since the modest declines in stocks in April, equities have generally moved higher since that point. However, the character of the rally shifted markedly in July with small-caps staging a move higher and value stocks surpassing growth for the month. New all-time highs were achieved for the S&P 500, Nasdaq Composite, and Dow Jones Industrial average in July, but their returns paled in comparison to the Russell 2000 Index, which is still below levels seen in 2021. See Table 1 for equity results for July 2024, year to date and calendar year 2023.   Table 1 Index    July 2024    YTD    2023 S&P 500    1.22%    16.70%    26.29% S&P 500 Equal Weight    4.49%    9.79%    13.87% DJIA    4.51%    9.52%    16.18% Russell 3000    1.86%    15.67%    25.96% NASDAQ Comp.    -0.73%    17.71%    44.64% Russell 2000    10.16%    12.07%    16.93% MSCI ACWI ex U.S.    2.32%    8.14%    15.62% MSCI Emerging Mkts Net    0.30%    7.81%     9.83%   Source: Bloomberg For illustrative purposes only. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. The leadership of large-cap growth, and specifically mega-cap Technology companies, took a back seat in July. While it is too early to determine if this is a new trend, the sharp move higher in small-caps seems to signify that at least some broadening might be occurring in the market. The NASDAQ being down during a month with the Russell 2000 Index is up more than 10% is a rare sight indeed. We will monitor rotation in the market in the weeks and months ahead. We have often discussed the difference between the returns of the headline, market-cap-weighted S&P 500 Index compared to the equal-weighted version of the same stocks. After indicating for some time the leadership of the largest companies in the headline index, the change to small and mid-cap companies can be seen in July with the equal-weighted version surpassing the returns of the traditional S&P 500. The “average” stock had a better run in July. An additional takeaway is the difference between the Russell 2000 Index and the S&P 500. We have been saying for some time how the S&P 500 is getting more mega-cap tech heavy and narrow in its return drivers – seeing the difference of almost 9% performance between these two indices tells us the S&P 500 reflects primarily larger companies and smaller stocks have very little impact to its results. Across market caps, value outperformed in July with one example being the Russell 1000 Value Index up 5.11% in July while the Russell 1000 Growth Index declined -1.70%. Developed markets advanced and continue to show solid results so far this year, but emerging markets were more or less flat for the month and lost their leadership to the broader international markets. We are acutely aware of the sharp declines across the board in equities over the first two trading days of August. We will continue to monitor those developments closely and the portfolio team will make necessary changes as they see fit during this time. Fixed Income After hitting the highest level of the year in April, the 10-year U.S. Treasury yield has declined for the last three months with some acceleration occurring in July. This move lower in rates has helped set up generally positive returns for bonds during this period. Most bond sectors have been able to push into positive territory after these recent gains. The 10-year U.S. Treasury closed last year at 3.88%. Over the course of the first half of the year, it has risen as high as 4.7%, before settling lower in recent months. The yield ended April at 4.69% before closing at 4.51% and 4.36% in May and June, respectively. July ended with the yield declining to 4.09% (with August 1 seeing it close below 4% for the first time since February.) See Table 2 for fixed income index returns for July 2024, year to date, and calendar year 2023.   Table 2 Index    July 2024    YTD    2023 Bloomberg U.S. Agg    2.34%    1.61%    5.53% Bloomberg U.S. Credit    2.35%    1.88%    8.18% Bloomberg U.S. High Yld    1.94%    4.58%    13.44% Bloomberg Muni    0.91%    0.50%    6.40% Bloomberg 30-year U.S. TSY    3.64%    -2.78%    1.93% Bloomberg U.S. TSY    2.19%    1.31%    4.05%   Source: Bloomberg. For illustrative purposes only. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. The more rate-sensitive sectors (like longer-dated U.S. Treasuries) showed the strongest results in July as yields dropped, but the 30-year U.S. Treasury Index is still negative so far this year. High yield bonds often follow what is happening with stocks, so they posted another solid month of gains in July and have the clear lead of the bond indices year to date. At the start of the year, we said we thought the 10-year U.S. Treasury yield would be in a range between 3.25% and 4.5% in 2024 (acknowledging that we got above that level in April). The trend in rates has been lower since those April highs and we believe rates will continue to decline through the second half of this year. Furthermore, as the Fed is likely to begin to cut rates in the Fall, we believe front end rates could start to decline rather dramatically after remaining stubbornly high so far this year. We maintain our long-standing position favoring credit versus pure rate exposure in this interest rate environment and that has served us well so far in 2024. We also believe the role bonds play in a portfolio, to provide stable cash flow and to help offset the volatility of stocks in the long run, has not changed. Furthermore, we believe that bond yields remain attractive, and we are seeing some of the best bond yields in years. In our opinion, having an active bond management approach makes sense in these volatile times. S&P 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. You cannot directly invest in the index. Dow Jones Industrial Average - The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.  NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. Today the NASDAQ Composite includes approximately 5,000 stocks, more than most other stock market indices. Because it is so broad-based, the Composite is one of the most widely followed and quoted major market indices. Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index which includes the 3,000 largest companies in the U.S., based on market capitalization. As of the latest reconstitution, the average market capitalization was approximately $762.8 million; the median market capitalization was approximately $613.5 million. The largest company in the index had an approximate market capitalization of $2.0 billion and a smallest of 218.4 million.  Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.  Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.  Government bonds are guaranteed by the U. S. Government and, if held to maturity, offer a fixed rate of return and fixed principal value. Securities offered through Kestra Investment Services, LLC (Kestra IS), Member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Offit Advisors is not affiliated with Kestra IS or Kestra AS. Offit Advisory Services, LLC is a tax firm but neither Kestra IS nor Kestra AS provide legal or tax advice and are not Certified Public Accounting firms.For more information on the Five Star Wealth Manager and the research/selection methodology go to: www.fivestarprofessional.com. Investor Disclosures: https://bit.ly/KF-Disclosures 6990 Columbia Gateway Drive Suite 150 Columbia, MD 21046, US Phone + Fax:  410 600 PLAN (7526) E – Office@OffitAdvisors.com W- www.OffitAdvisors.com   To schedule an appointment with us, click here! The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.

On It with Offit - July 2024

Check Out the July '24 Edition of OIWO

JULY | 2024 Nerd Notes!: Clarity on 10 Year Rule with Non-Spouse Beneficiary IRAs and Roth IRAs In 2020 the SECURE ACT changed Beneficiary IRAs and Roth IRAs for non-spouse beneficiaries in which they were no longer allowed to take lifetime RMDs and "stretch" the withdrawals and taxes over the lives and now only had 10 years to fully withdraw the account.  However, there was never finality or clarity as to whether clients need to take annual RMDs each year in a Beneficiary account, or not? We now have clarity and starting in 2025, for Beneficiary Roth IRAs or Beneficiary Traditional IRAs, if the account owner passed away was after the RMD age (ie. post age 72), the new beneficiary needs to take annual RMDs and fully withdraw the account by the 10th year.  If the account passed away owner was before their RMD age (ie. before age 72) , the beneficiary doesn’t need to take annual RMDs and but still needs to fully withdraw the account by the 10th year. Note: the actual RMD age can vary based on which year one was born) For example, if someone died in 2020 for example, and the prior account owner was past their RMD starting age, the beneficiary who has not been taking RMDs yet, will need to start that in 2025 and fully satisfy it by 2030. For any clients who have not been taking annual RMDs yet, no worries, they just need to know they need to start in 2025. For example, if someone died in 2020 for example, and the prior account owner had not reached their RMD starting age, the beneficiary who has not been taking RMDs yet, will not need to start annual RMDs in 2025 and will just need to fully withdraw the account by 2025 We will be proactively reaching out to clients who this may affect.  If you have any questions in the interim, please contact us at 410-600-PLAN Klik TV Episode 67: Managing Financials with Offit Advisors  Check out this enlightening conversation with Financial Planning experts Ben Offit and Sophia Trakhtman from Offit Advisors. In this episode, Ben and Sophia share valuable insights on various aspects of financial management. Whether you're new to financial planning or looking to refine your strategies, this video has something for everyone. Ben Takes in the Sights (and Suds) in Beautiful Wyoming Ben spent the July 4th holiday in "Big Wyoming", catching up with childhood friends, and enjoying some rest, relaxation, nature, and fun in one of the most beautiful parts of our country. OA Client Launches Moola! Bringing Helpful Tips & Tricks to Consumers  One of our clients, Jason, has launched a site called Moola! Jason is ALWAYS talking about the myriad of ways to get more out of a dollar from credit cards, shopping, travel and more – and this is an outlet for that passion where he wants to help teach others. Make sure to check it out! Words of Wisdom from an All-time Tennis Great If you have a few moments, this commencement speech by Roger Federer is well worth the watch/listen. Federer is not only an all-time great athlete but also a truly great speaker, drawing from his tennis career to share his wisdom about life with Dartmouth's graduating class of 2024. Chipotle executed a 50-1 stock split last week, bringing its share price from roughly $3,200 to $63. The fast-food chain priced its shares at $22 when it debuted in 2006! Yahoo!Finance, June 25, 2024   In 2023, America’s millionaire population grew by roughly 500,000, or 7.3%, to 7.43 million people. The number of Americans worth $30 million or more grew 7.5% to 90,700 while their fortunes surged to $7.4 trillion. CNBC, June 7, 2024 Growth stocks' outperformance versus Value is now at its highest level since 2000. What happened in the seven years following July 2000? Reversion to the mean. Growth stocks declined 27%, while Value stocks gained 84%. Charlie Bilello, June 18, 2024   About half of the population aged 65 or older live in households that receive at least 50% of their family income from Social Security benefits. FAS, Dec 16, 2022 The price of postage stamps went up for the second time this year and for the fifth time in 24 months. The 5-cent increase for First Class stamps ties the record for the biggest hike ever. However, adjusting for inflation, the price of a stamp has held fairly steady for the past 139 years. Axios Markets, July 15, 2024 Two-thirds of the world’s population now live in countries where the birth rates have dropped below 2.1 babies per woman, which is the number needed to keep the population constant. Researchers now expect the global population to peak at about 9.5 billion people in 2061 and then start falling. That would be the first such global population decline since the Black Death in the Middle Ages. The Week “If at first you don’t succeed, then skydiving definitely isn’t for you.” - Steven Wright Seven Timeless Investing Lessons from Jack Bogle Today we are going delve into seven timeless investing lessons from Jack Bogle, the founder of Vanguard and a champion for sensible investing and a legend in my industry. These lessons are quite similar to the previous wisdoms we shared from Warren Buffett and Charlie Munger, but each expert has their own perspective and twist. Here we go: 1. No one rings a bell at tops or bottoms. Market timing is a futile endeavor. Even seasoned professionals can't consistently predict when the market will rise or fall. Bogle emphasized that the best approach is to invest consistently over the long term, rather than trying to chase short-term gains. For example, the S&P 500 has repeatedly hit all-time highs, even when valuations seemed stretched, proving that timing the market is difficult. 2. When in doubt, be conservative about assumptions. Bogle suggested erring on the side of conservatism in your financial planning, ensuring your investments align with your risk tolerance. This means being realistic about your expected returns and making sure your financial plan can withstand market fluctuations. For example, you could assume a lower rate of return to ensure that you save enough to meet your goals. 3. Lengthen your time horizon. The longer you invest, the less impact short-term market volatility will have on your overall returns. Bogle encouraged investors to think long- term, recognizing that time is a powerful ally in the investing journey. For example, if you start investing in your 20s for retirement, you have decades to ride out market ups and downs. 4. Stick to a good plan. The pursuit of the "perfect" investment plan can be counterproductive. It's more important to have a solid plan that you can adhere to consistently. Bogle advocated for simplicity and discipline in investing, emphasizing the power of steady contributions over time. This means creating a diversified portfolio that aligns with your risk tolerance and financial goals, and sticking to it even when the market gets turbulent. 5. Don't chase the past. Past performance is not indicative of future results. Chasing hot investments often leads to buying high and selling low. Bogle advised investors to focus on diversification and avoid the temptation to follow the latest trends. The ARK Innovation Fund, which experienced a meteoric rise followed by a significant decline, illustrates the dangers of chasing performance. 6. Buy the haystack. Trying to pick individual winning stocks is a daunting task. Bogle suggested buying the entire haystack by investing in a broad market index fund. This approach ensures you own a piece of all the major companies, including future market leaders. For example, the S&P 500 is heavily concentrated in a few top holdings like Apple, Microsoft, and Amazon. By owning the entire index, you automatically benefit from the growth of these dominant companies and the newer entrants like NVIDIA. 7. Just stand there. When markets experience downturns, it's natural to feel anxious. However, Bogle's advice is to "just stand there". Don't panic sell, as this can lock in losses and derail your long-term goals. Instead, stay invested and continue contributing to your portfolio. Market downturns are a normal part of the investing journey and can even present opportunities to buy at lower prices. By following these timeless lessons from Jack Bogle, you can navigate the complexities of the financial markets with confidence and increase your chances of achieving your long-term financial goals. Enjoy the summer! 2024 Mid-Year Market Outlook S&P 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. You cannot directly invest in the index. Dow Jones Industrial Average - The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.  NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. Today the NASDAQ Composite includes approximately 5,000 stocks, more than most other stock market indices. Because it is so broad-based, the Composite is one of the most widely followed and quoted major market indices. Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index which includes the 3,000 largest companies in the U.S., based on market capitalization. As of the latest reconstitution, the average market capitalization was approximately $762.8 million; the median market capitalization was approximately $613.5 million. The largest company in the index had an approximate market capitalization of $2.0 billion and a smallest of 218.4 million.  Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.  Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.  Government bonds are guaranteed by the U. S. Government and, if held to maturity, offer a fixed rate of return and fixed principal value. Securities offered through Kestra Investment Services, LLC (Kestra IS), Member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Offit Advisors is not affiliated with Kestra IS or Kestra AS. Offit Advisory Services, LLC is a tax firm but neither Kestra IS nor Kestra AS provide legal or tax advice and are not Certified Public Accounting firms.For more information on the Five Star Wealth Manager and the research/selection methodology go to: www.fivestarprofessional.com. Investor Disclosures: https://bit.ly/KF-Disclosures 6990 Columbia Gateway Drive Suite 150 Columbia, MD 21046, US Phone + Fax:  410 600 PLAN (7526) E – Office@OffitAdvisors.com W- www.OffitAdvisors.com   To schedule an appointment with us, click here! The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.

On It with Offit - June 2024

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JUNE | 2024 Congratulations Barbara Owens & Jeanne Berger on 8 Great Years with Offit Advisors! Barbara and Jeanne -  you have been there every step of the way, helping Offit Advisors better serve our clients as we've grown. We are truly grateful for your for the invaluable contributions you have made to our company, and for improving quality of life for the people we work for. Congratulations! Ben and his team have been a significant positive influence when it comes to making financial planning smooth. While we were doing well, we were all over the place and Ben helped simplify our portfolio with excellent results. There is always someone to listen and help, and Ben makes himself available in person or online at short notice. His calm objectivity, task setting, and careful calculations have been instrumental as we shape our plans for departing jobs and moving into "retirement" – so that we can seize other profitable opportunities. Hinrich & Christine  The testimonials presented are made by individuals who are clients of Offit Advisors and are applicable only to the individuals depicted and may not be representative of the experience of others. The testimonials are not paid nor have the participants received any non-cash compensation and are not indicative of future performance or success. The testimonials have been evaluated for conflicts of interest and have not been found to present any conflicts. OA Empower Your Future Event to Provide Young People with Tools for Financial Peace of Mind We are excited to announce that we hosting an educational event in the Fall to provide teens and young adults with essential financial literacy and investment knowledge.   This event aims to equip participants with the tools and understanding necessary to make informed financial decisions as they grow older. Topics will include:   •             Basics of budgeting and saving •             Understanding credit and managing debt •             Introduction to investing and the stock market •             Long-term financial planning and goal-setting        We believe that fostering financial literacy at a young age is crucial for future success and stability. However, before we move forward with planning, we would love to gauge your interest and gather feedback to ensure the event meets the needs and interests of our community.   Please take a moment to let us know if you would be interested in having your teen or young adult participate in such an event. Additionally, any suggestions on topics you believe should be covered or other feedback would be greatly appreciated.   Thank you for your time and consideration. We look forward to your response and hope to create a valuable and engaging experience for our young attendees. Express Your Interest SMB Spotlight | Meet Nash from Quarry Bagels OA's Sophia Trakhtman sits down with Nash, owner of Quarry Bagels for a quick chat about his business and his views on Financial Plannng. Ben Joins Maryland Delegate Malcolm Ruff to Celebrate Juneteenth Holiday Earlier this month, Ben attended the celebrations at long time client and friend, State Delegate Malcolm Ruff's RUFFHouse Juneteenth Jubilee, an event that he annually hosts at his home in Baltimore City. Now a federal holiday, Juneteenth is celebrated annually on June 19, and commemorates one of the most important moments in American history; The end of slavery in the United States. June Highlights In June, the Offit Advisors team made meals for those going through cancer treatments at the Ulman House in Baltimore City.  It was an honor to help serve dinner and have some laughs with great people. Keep up the good fight!        In addition Ben and Sophia and their spouses Amanda and Ryan attended the Ulman Blue Jeans and Bowties gala further celebrating the organization and its mission. We also had a great time at Upper Deck Golf at Camden Yards. OA hosted some of our clients at the event, which featured 9-holes of golf, with tee shots from various tee boxes placed in the stands of our hometown baseball stadium. In 1790, Benjamin Franklin bequeathed 1,000 pounds sterling (roughly $4,000 at the time) to the cities of Boston and Philadelphia but requested that 25% not be touched until the 200th anniversary of his death. By 1994, these trust funds were worth some $6.5 million. Yahoo!Finance, May 24, 2024   According to the Bureau of Labor Statistics, in 2022, the average person 65 years and older spent $4818 a month. Yahoo!Finance, June 20, 2024   Since the bull market kicked off in October 2022, the DOW has surged 48% in 19 months. Overall, bull market statistics since 1900 show the DJIA has a median gain of 97% over roughly two years. In the post-WWII era, the median was 100%, but over almost four years. Forbes March 21, 2024 and TKer, June 2, 2024   The International Energy Agency forecasts that by 2026, data centers globally will use an amount of energy per year equal to Japan’s electricity consumption. Morning Brew, May 24, 2024   Speaking to Warren Buffett, Charlie Munger said, “If people weren’t so often wrong, we wouldn’t be so rich.” Yahoo!Finance, June 12, 2024   “A lie gets halfway around the world before the truth has a chance to get its pants on.” Winston Churchill Top Tips for Raising Money-Savvy Kids Teaching your children about money management is a crucial life skill and something that unfortunately is not taught as a full time class in our schools, however, one could argue it is more important than anything else as it is a skill everyone eventually needs to understand.  Having money skills equips individuals to make sound financial decisions and sets the foundation for a secure future. Here are some practical tips to instill financial literacy in your kids: Start Early with Allowances: Begin by giving your child a regular allowance, even a small amount. This helps them understand that money is a resource that needs to be managed. Emphasize that the allowance is theirs to decide how to spend, save, or invest.  This could be as small as $5 per month and the next time you go to Target and they want to buy something, this can teach them the value of the dollar and how far it can go to buy or not buy what they want and teach them early lessons about budgeting.  Encourage Teenagers to Get Jobs: As your child grows older, encourage them to get a part-time job. Working not only teaches them about earning money but also exposes them to the value of hard work and responsibility. Diverse work experiences, such as working in the service industry, can provide valuable life lessons like customer service, interpersonal communication,  tipping practices, and the realities of earning money through hard work. Teach Saving and Investing: Help your child open a savings account and encourage them to save a portion of their allowance or earnings. Introduce them to the concept of investing and how it can grow their money over time. Consider matching their savings contributions to incentivize their efforts.  Did you know that once someone has earned income they can contribute towards a Roth IRA?  So if they make $3,000 over the course of the summer, they can contribute up to that amount to a Roth IRA.  You could incentivize them by having them contribute $1500 and you match with $1500, to equal $3,000. Open and Honest Communication: While it's important not to overwhelm children with financial details, maintain open communication about money. Discuss family finances in age-appropriate terms and involve them in budgeting decisions, such as planning a vacation or saving for a new item. Lead by Example: Children learn by observing their parents. Demonstrate responsible financial behavior by budgeting, saving, and making thoughtful spending choices. Avoid complaining about financial stress in front of your children, as it can create anxiety. Focus on Experiences, Not Just Things: Emphasize the value of experiences over material possessions. Plan family outings, vacations, or activities that create lasting memories rather than solely focusing on buying the latest toys or gadgets. Be Patient and Supportive: Teaching financial literacy is an ongoing process. Be patient with your child's mistakes and offer guidance and support as they learn to manage money effectively.  For example, it may take time for them to understand how a credit card works, or mutual funds, or CDs, etc but they will learn with time. By implementing these tips, you can instill valuable financial skills in your children and empower them to make informed decisions about their money throughout their lives. Remember, it's never too early or too late to start teaching your children about money management. Bonus Tip: Consider using educational resources like books, games, or online tools to make learning about finances fun and engaging for your kids. S&P 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. You cannot directly invest in the index. Dow Jones Industrial Average - The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.  NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. Today the NASDAQ Composite includes approximately 5,000 stocks, more than most other stock market indices. Because it is so broad-based, the Composite is one of the most widely followed and quoted major market indices. Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index which includes the 3,000 largest companies in the U.S., based on market capitalization. As of the latest reconstitution, the average market capitalization was approximately $762.8 million; the median market capitalization was approximately $613.5 million. The largest company in the index had an approximate market capitalization of $2.0 billion and a smallest of 218.4 million.  Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.  Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.  Government bonds are guaranteed by the U. S. Government and, if held to maturity, offer a fixed rate of return and fixed principal value. Securities offered through Kestra Investment Services, LLC (Kestra IS), Member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Offit Advisors is not affiliated with Kestra IS or Kestra AS. Offit Advisory Services, LLC is a tax firm but neither Kestra IS nor Kestra AS provide legal or tax advice and are not Certified Public Accounting firms.For more information on the Five Star Wealth Manager and the research/selection methodology go to: www.fivestarprofessional.com. Investor Disclosures: https://bit.ly/KF-Disclosures 6990 Columbia Gateway Drive Suite 150 Columbia, MD 21046, US Phone + Fax:  410 600 PLAN (7526) E – Office@OffitAdvisors.com W- www.OffitAdvisors.com   To schedule an appointment with us, click here! The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.

On It with Offit - May 2024

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MAY | 2024 May Highlights In April, Laura, Zach, and Sophia went to the Financial Planning Association of Maryland's Annual Symposium, where topics ranged from the impact of the upcoming election on markets to Real Estate, and even explored marketing strategies for financial professionals. Laura is President of the FPA of Maryland and helped lead the event, which featured famed financial speaker Morgan Housel. Meanwhile, Ben and his wife Amanda enjoyed some time at this year's Kestra Leaders Conference held at the historical Homestead in Hot Springs, Virginia which is for their top advisors across the country, where they were able to forge new relationships and celebrate the success of fellow financial planning professionals. And away from the office, Ben and his son Nate represented Offit Advisors at the Maple Lawn Spring Fling! Definitely Ben Offit! Down to earth, super easy to work with, and a great listener! Every time we have a “what-if” panic we can meet or email our questions and he talks us off a ledge every time. :) Without him we would still be unsure if we could retire in a year and a half as planned, but now we have confidence that we can. Wendy S. Happy 5 Years with Offit Advisors, Laura! Laura -  thanks for taking a leap of faith with our firm and growing with us over the years.  You have been a great asset to us and we appreciate you, watching you grow, and your hard work and effort to serve clients and make the firm a better place for all! The Five Key Traits of Highly Successful People As a financial planner, I've had the privilege of working with numerous individuals who have achieved remarkable success in their personal and professional lives. While each person's journey is unique, I've observed five common traits that set them apart from the rest. These traits are the driving forces behind their accomplishments, and I believe they can be cultivated by anyone seeking to achieve their goals.  Enjoy! 1. Drive: The Engine of Success The most successful people I work with have an insatiable drive to succeed. They're not satisfied with mediocrity and are constantly striving to improve and achieve more. This drive is not just about achieving a specific goal, but a continuous process of growth and self-improvement. It's the engine that propels them forward, even when faced with obstacles and challenges. 2. Intrinsic Motivation: The Fire Within Successful individuals are motivated from within. They don't need external stimuli or encouragement to push them forward. Their motivation is deeply rooted in their values, passions, and desires. They're driven by a sense of purpose, and their motivation is not dependent on external factors. This intrinsic motivation gives them the strength to persevere, even when faced with adversity. 3. Resilience: Bouncing Back from Setbacks Resilience is the ability to bounce back from setbacks, failures, and difficulties. Successful people have developed this trait, which enables them to navigate life's challenges with grace and determination. They don't get bogged down by obstacles; instead, they learn from their mistakes, dust themselves off, and move forward with renewed energy and determination. 4. Follow-Through: Turning Intentions into Action Successful individuals are known for their reliability and accountability. They turn their intentions into actions, and their words into deeds. They're committed to following through on their promises, and their integrity is unwavering. This trait earns them the trust and respect of others, and it's a key factor in their success. 5. Positive Attitude: The Power of Optimism A positive attitude is a hallmark of successful people. They have an optimistic outlook on life, and they believe in their ability to achieve their goals. They don't get bogged down by negativity or pessimism, and they're not deterred by setbacks. Instead, they focus on the possibilities, and they're confident in their ability to overcome challenges. The Power of Cultivating These Traits While these traits may come naturally to some, they can also be developed and strengthened over time. By cultivating drive, intrinsic motivation, resilience, follow-through, and a positive attitude, you'll be better equipped to achieve your goals and overcome obstacles. Remember, success is not just about achieving a specific outcome; it's about developing the character and mindset necessary to overcome challenges and achieve greatness. According to IMF projections, the U.S. will account for 26.3% of global GDP in 2024, the highest level in almost two decades. The Wall Street Journal, April 25, 2024   New data by the CDC outlined another drop in US births. The total fertility rate fell from 1.66 births per woman in 2022 to 1.62 last year, the lowest rate recorded since tracking began in the 1930s. The Wall Street Journal, April 25, 2024 New York City boasts nearly 350,000 millionaires, the highest number worldwide. This wealth concentration means roughly one in every 24 New Yorkers possesses a net worth of at least one million dollars. Yahoo!finance, May 8, 2024   Antarctica is home to 138 volcanoes, although only two are active. Mount Erebus, one of the two and the planet’s southernmost active volcano, spews about 80 grams of gold dust into the air every day. Yahoo!news, April 16, 2024 Research has shown that you can fit about 10 people into a square meter, crowded elevator-style. Los Angeles is about 1.2 billion square meters, which means you could easily fit the world’s population of 7.8 billion people inside the city of LA. Interesting Facts, May 6, 2024   In 2022, the world’s airline companies mishandled an average of 7.6 pieces of baggage per 1,000 passengers. However, perfection is indeed possible, as seen by Japan’s Kansai Airport, which has not lost a single item of baggage in 30 years since it opened in September 1994. Newsweek, May 2, 2024   “Just because they say it is impossible doesn’t mean you can’t do it.” Roger Banister S&P 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. You cannot directly invest in the index. Dow Jones Industrial Average - The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.  NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. Today the NASDAQ Composite includes approximately 5,000 stocks, more than most other stock market indices. Because it is so broad-based, the Composite is one of the most widely followed and quoted major market indices. Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index which includes the 3,000 largest companies in the U.S., based on market capitalization. As of the latest reconstitution, the average market capitalization was approximately $762.8 million; the median market capitalization was approximately $613.5 million. The largest company in the index had an approximate market capitalization of $2.0 billion and a smallest of 218.4 million.  Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.  Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.  Government bonds are guaranteed by the U. S. Government and, if held to maturity, offer a fixed rate of return and fixed principal value. Securities offered through Kestra Investment Services, LLC (Kestra IS), Member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Offit Advisors is not affiliated with Kestra IS or Kestra AS. Offit Advisory Services, LLC is a tax firm but neither Kestra IS nor Kestra AS provide legal or tax advice and are not Certified Public Accounting firms.For more information on the Five Star Wealth Manager and the research/selection methodology go to: www.fivestarprofessional.com. Investor Disclosures: https://bit.ly/KF-Disclosures 6990 Columbia Gateway Drive Suite 150 Columbia, MD 21046, US Phone + Fax:  410 600 PLAN (7526) E – Office@OffitAdvisors.com W- www.OffitAdvisors.com   To schedule an appointment with us, click here! The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.