Steps to Become a Millionaire; Part 2

Hello Loyal Readership,

We got a lot of positive feedback about our Ten Steps to Become a Millionaire, so we thought about a few other items that could be included and created a part two!  So you want to be a millionaire? 

Follow these steps:

  1. Own it and do it.  Take responsibility for making it happen.  Contrary to popular belief, most millionaires are self-made and 79% did not receive any inheritance of family wealth.

  2. Start saving and investing towards it TODAY – if you assume a 7% annualized rate of return, you will need to save the following amounts to have $1M by age 65:

    1. Age 25 - $400 per month

    2. Age 30 - $580 per month

    3. Age 40 - $1275 per month

    4. Age 50 - $3200 per month

  3. Obtain a Bachelor’s Degree – it’s not fully necessary, but statistics show that education helps.  It’s true that some high school and college drop outs make it really big, and kudos to those people!  However, this is the exception, not the majority.  88% of millionaires have a college degree (compared to 33% of the general population).  Also, 52% have an advanced degree (compared to 12% of the general population).

  4. Pick your career wisely – Certain careers have statistically showing a higher chance of translating into becoming a millionaire – accountants, actuaries, engineers, doctors, lawyers, zoologists, professors, and sales professionals.  This is not to say that you cannot become a millionaire outside of these careers, but you may have a higher probability to do so in the above careers.

  5. Work, over a long period of time – Yes, the vast majority of millionaires go to an actual job every day for 28 years before they hit the millionaire mark.

  6. Save into your 401k – find a job or career that offers the opportunity to save into a 401k with a match, and take advantage of it right away.  80% of millionaires invested in their 401k.

  7. Don’t carry credit card debt – if you spend more than you earn, you will end up with credit card debt that will compound against you with high interest rates and make it near impossible to become a millionaire.  Spend less than you earn and save more.  Most millionaire never carry credit card debt. 

  8. Save into tax-deferred vehicles – This gives you a tax benefit that makes it easier to become a millionaire.  Use things such as 401ks, IRAs, Roth IRAs, and cash value life insurance.

  9. Become friendly with stocks and equities – One needs to earn close to a 7% annualized rate of return over time to become a millionaire.  Holding cash earning 0-2% or bonds earning 0-4% will make it much harder to become a millionaire.

  10. Be disciplined with investing – Stop messing around with fads (ie. Day trading, meme stocks, crypto, NFTs).  These can feel and sound exciting, but these are not too much different than gambling and you are more likely to strike out with $0 than hitting the home run and making millions.  Most millionaires invest consistently, with a disciplined and diversified long term portfolio.  This focus on the long term is more boring, but it is what works more often.  Embrace the boring! 

  11. Accept volatility – the stock market is down about 1 in 4 years.  Market corrections ( a drop of 10% of more) happen every year or so.  Bear markets (a drop of 20% of more) happen every 5 years or so.  Accept this and look at as an opportunity to buy low and take advantage of the short term discount!

  12. No excuses, do it, now!  - You can decide if you want to become a millionaire or not.  Take action today.  Start saving in an account today, ignore the noise, make it happen.

Sources: Entrepreneur and Business Insider

On It with Offit - December 2022

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DEC | 2022

HAPPY HOLIDAYS
from OFFIT ADVISORS!

TEAMMATE SPOTLIGHT

Favorite Philanthropy:
  • American Cancer Society and American Foundation for Suicide Prevention

Interests:
  • Spending time with family, friends and my fur baby Pebbles, Cooking, Pilates, Dancing
 
Favorite Offit Advisors Value:
  • Our Team and Our Clients – We have an amazing Team, and we all work together to make sure we do the best job for our clients.
 
What is your philosophy on client service?
  • Knowing our client’s come first and assisting them with each individual need within a timely manner and making sure they are aware of the services we provide to them.
 
What gets you out of bed in the morning?
  • Knowing that “today” is a new day and “tomorrow” is not promised to any of us.
 
What could you give a 30-minute presentation about with no preparation?
  • Self-Awareness
 
Name one thing you'd spend more on to get the best quality.
  • Health

proACTIONPlanning Series

ep. 3 | Defensive Financial Planning
The latest from the Offit Advisors proAction Planning series. A discussion about how to protect yourself before you retire with Disability and Long-Term Care Insurance with Ben Offit, CFP®. This is for general information only and is not intended to provide specific advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. Click the image above to watch the video!

Ben Joins Carter & Tim for October Episode of the Health & Wealth Podcast

Listen Now

Qatar spent about $300 billion on stadiums and groundwork to host the 2022 FIFA World Cup. That money totaled more than all previous World Cups and Olympics combined,

Vox, November 25, 2022
 

The auction of Microsoft co-founder Paul Allen’s art collection brought in a record $1.6 billion. Despite Allen being a discerning art collector, he recorded an average rate of just 6.2% over 18 years for the pieces he previously bought at auction.

Morning Brew, November 12, 2022
 

Americans are moving to Mexico at the fastest pace on record, with permits to temporarily live in the country surging 85% from the year before Covid.

Bloomberg, November 4, 2022
 

The smorgasbord of software needed to do any given task can make it feel like we are working multiple jobs at once. A study in Harvard Business Review suggests workers are switching from app to app and website to website, nearly 1,200 times a day – that amounts to a total of 9% of their annual time at work.

Axios, November 7, 2022

“Good ideas carried to wretched excess, become bad ideas.”
Charlie Munger
 

When Pennsylvania’s Senator-elect John Fetterman heads to Capitol Hill in January, exactly 10% of the Senate will have the first name Jon or John.

Washington Post, November 11, 2022


"Thanksgiving is a time to count your blessings, one by one, as each relative goes home."
Melanie White

Ten Steps to Become a Millionaire

Americans can become millionaires in many different ways – including real estate, business, inheritance, etc. However, I believe the surest path for most Americans is simply by saving and investing, and effectively using your company’s 401k plan.

So here is a clear 10 step path to joining the ranks of America’s 401(k) millionaires:

1) Sign up for your 401k and do it TODAY.

2) If your company offers a match, ALWAYS contribute up the full match, because it is an instant 100% rate of return. For example, if in order to get a 3% match, you need to contribute 3%, that is a 100% rate of return because irrespective of market performance, the company is putting in for you the same amount that you are. ALWAYS CONTRIBUTE AT LEAST UP TO THE MATCH, it’s hard to beat from a rate of return perspective.

3) After you are putting in the minimum to capture the maximum match, save as much as you can.

The only caveat here is if you have other more important short-term priorities or financial obligations. For example, if you need to put extra money towards buying a new home, or medical expenses those may take priority. Or if you have high interest debt, like credit card debt at 15%, it may make more sense to pay that off before putting extra money into the 401k.

Once those are paid off, redirect what you were paying towards those expenses or higher-interest debt into the 401k!

4) Take 20 minutes to see if a Financial Planner or CPA can help determine if you are better off using a Roth 401k or a Traditional 401k – the difference in taxes between now and later can really make a difference.

5) Focus on your asset allocation and investment mix, and start with a bias towards growth and stock allocation. Too many 401k investors hold far too much of their account in bonds, which should be kept to a minimum for those trying to accumulate long-term wealth. To get to millionaire status, you will need to be more of a stock owner, not a bond lender.

6) Don’t market time! Every time you get paid, invest each pay period, no matter what is happening in the markets! IGNORE THE NOISE! Don’t pay attention to the up and down movement of your account. Make automatic contributions each pay regardless of how the market is doing right now.

7) If you have the cash flow to do so, accelerate your contributions as early in the year as possible. For example, if your plan is to max out your 401k for the year, and you can do it in 6 months instead of 12 months, this gives your money more time to grow. However, before doing this, check with your HR representative to ensure that you won’t lose any of your company match by doing this.

8) Pay attention to costs of the funds and get familiar with the costs of each funds, and have a bias towards lower-cost funds.

9) Utilize funds that represent indexes. For example, you could incorporate funds that represent that S&P 500 index or International Indexes. Make sure you have diversification across the main asset classes – Large Cap, Mid Cap, Small Cap, International Developed Markets, International Emerging Markets, Real Estate, Commodities.

10) Wait until you reach full retirement age (at least 59.5 years old) to withdraw your funds, so you won’t pay a penalty for an early withdrawal. Let tax-deferred compounding work for you as long as possible!

If you follow these tips, for a few decades, it is almost certain you will become a millionaire!

Stock Rally Continues and Bonds Join the Party in November

Highlights

  • Following sharp declines in September, the stock market has mounted a solid comeback so far in the fourth quarter with gains in October and November. Additionally, international stocks rebounded sharply during the month.
  • Bonds, which did not participate in the equity rebound in October, staged a strong bounce in November as yields declined.
  • The 10-year U.S. Treasury yield closed November at 3.68% compared to the October close of 4.10%.
  • As expected, the FOMC raised its policy rate by another 75-basis points in November. The debate in the market is whether the Fed raises rates by a less aggressive amount at its final FOMC meeting in mid-December and into 2023.
  • The economy continues to slow under the pressure of higher interest rates. However, the second reading of U.S. GDP for the third quarter of 2022 was revised higher to a 2.9% annualized growth rate, reinforcing our belief that we are not currently in a recession, but the odds of a mild recession later next year are rising.

Equity Markets
 

Equity index returns for November were as follows: The S&P 500 gained 5.59%, the Dow Jones Industrial Average rallied 6.04%, the Russell 3000 advanced 5.22%, the NASDAQ Composite rose by 4.51%, and the Russell 2000 Index, a measure of small-cap stocks, increased by 2.34%. Like the general trend in 2022, large, value-oriented companies fared relatively better during the month compared to growth and smaller-cap stocks. Year to date, these indices are down -13.10%, -2.89%, -14.18%, -26.13% and -14.91%, respectively.

The month started choppy after the early November FOMC meeting, which saw the Fed raise rates by 75 basis points and the continuation of the Fed’s hawkish stance toward monetary policy. However, stocks enjoyed a rather steady run from that point for the balance of the month. The VIX Index marched lower for most of the month as stocks rose and it broke below 20 in early December for the first time since August as volatility eased.

Equity strength was widespread in November, but there was some dispersion of returns. The tech-heavy NASDAQ Composite saw relative returns surpassed by most other major indices except for small-cap measures as growth remained an underperformer. The Russell 1000 Growth Index gained 4.56% for the month but is still off -23.26% for the year to date. In contrast, the Russell 1000 Value Index advanced 6.25% in November and is down a more modest -3.65% so far this year – just under 2000 basis points of better relative performance. After better relative gains in October, small caps underperformed in November, but value still outpaced growth. The Russell 2000 Growth Index rose just 1.63% in November while the Russell 2000 Value Index gained 3.06%. Year to date, those indices have declined -21.31% and -8.48%, respectively. Growth stocks are sensitive to interest rate moves and higher interest rates this year have led to underperformance of growth stocks in 2022. We continue to use our disciplined approach of seeking out what we believe to be high-quality companies with improving business conditions at what we believe are good prices and those companies can be found in both the value and growth universe.

International stocks were the real story in November with a sharp rebound in performance. As we have often discussed this year, the US Dollar Index (DXY) had broadly strengthened during most of 2022. However, it began to plateau over the last few months before dropping in November. Remember that an international stock loses value in dollar terms if the U.S. Dollar appreciates against that stock’s home currency. The removal of that significant headwind of dollar strength in November contributed to the rally in international stocks. The MSCI ACWI ex USA Index, a broad measure of international equities, gained 11.80% in November, while the MSCI Emerging Markets Index rallied 14.83%. On a year-to-date basis, these indices are down -15.37% and -18.95%, respectively.

Fixed Income

Fixed income returns were as follows for November: the Bloomberg U.S. Aggregate Bond Index gained 3.68%, the Bloomberg U.S. Credit Index rallied 4.97%, the Bloomberg U.S. Corporate High Yield Index advanced 2.17% and the Bloomberg Municipal Index improved by 4.68%. As would be expected, the 30-year U.S. Treasury Index had some of the best results, gaining 7.19% for the month as rates dropped, while the general U.S. Treasury Index advanced 2.68%. For the year to date, the returns for these indices in the same order were as follows: -12.62%. -14.89%, -10.63%, -8.79%, -31.59% and -12.01%, respectively.

The 4% level on the 10-year U.S. Treasury was breached in October and closed on 10/24 at a more than 10-year high of 4.25% – a level not seen since the credit crisis. The yield closed the month at 4.10% and continued to move lower in November, closing at 3.68%. Clearly, the overall increase in interest rates this year has put significant pressure on the bond market and returns have suffered. While short-term returns are negatively impacted by the Fed raising rates, future potential returns for bonds have become more attractive with the higher yields available making bonds a more attractive asset class. As we have previously stated, we believe the move higher in rates in 2022 has run its course at the longer end of the yield curve and we expect the 10-year yield to move lower over the balance of the year. Since that high mark on the 10-year yield in late October, longer rates have come down and created a better backdrop for bond returns, which resulted in solid gains in November – while still acknowledging that results overall in 2022 have been challenging to say the least.

Bonds have struggled this year as there has been a repricing of interest rates across the yield curve and across bond sectors under this Fed rate tightening cycle. We maintain our long-standing position favoring credit versus pure rate exposure in this interest rate environment. We also believe that the role bonds play in a portfolio, to provide stable cash flows and to help offset the volatility of stocks in the long run, has not changed.

 


Source: Clark Capital Benchmark Review, November 2022


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
Facebook
Twitter
Website
LinkedIn
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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.


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On It with Offit - October 2022

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OCT | 2022

Update on the Markets

In this video, Ben explains how even in a down market, disciplined investing is proven to pay off in the long-run.

Ben Offit Named Top 100 People In Finance by The Top 100 Magazine

Connecting money with purpose is a key motivator for Certified Financial Planner® Ben Offit. Named to 'Fortune' magazine’s list of 'Top Wealth Managers Under 40,' Ben has been a '5 Star Wealth Manager' since 2017. He’s also been recognized as one of 'Baltimore' magazine’s 'Leaders in Finance.' As principal of Offit Advisors, Ben works with clients on financial planning, investment management, tax planning, and insurance planning.

Read More

Join Offit Advisors & Assetmark for an Exclusive 3rd Quarter Market Review Webinar

Join us for this exclusive webinar on Investing in Uncertain times, where you’ll gain insights about the current state of the economy and will have an opportunity to ask questions at the end. They will also review recent Fed actions, inflation, and the possibility of recession, as well as the investment implications for stocks and bonds.

Register Now

Student Loan Forgiveness Update

The $10K loan forgiveness application is available. Anyone needing this needs to do so by the end of the year. Click the link below to complete the application.
 
Note: Some states are saying this will be taxed as income at the state level, but not federal taxation, so just be mindful of that.

View Application

- 401(k) plans hold a whopping $7.7 trillion in retirement savings.

CNBC, October 6, 2022

- The new DNA sequencing machine made by Illumina, which costs roughly $1 million, can now sequence a human genome for less than $240. That work used to cost $100 million just 21 years ago.

Axios, October 2, 2022
 

- We’ve seen a significant drawdown in the US Strategic Petroleum Reserve, which has moved down to its lowest level since 1984.

Forbes, September 7, 2022

Belarus’s President Alexander Lukashenko has come up with a foolproof way to curb rampant inflation: banning inflation. His prohibition on all consumer price increases took immediate effect last Thursday. It's not the first time the Putin ally has made a radical proposal: He also suggested a shot of vodka a day to keep Covid at bay.

Reuters, October 6, 2022
 

When asked what he was going to do with his signing bonus, baseball great Tug McGraw said, "I'll spend ninety percent on good times, women, and Irish Whiskey. The other ten percent - I'll probably waste."

Baseball Almanac

- “If you want a happy ending, that depends, of course, on where you stop your story.”

Orson Welles

 

 

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
Facebook
Twitter
Website
LinkedIn
Instagram
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.


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The Greatest Investment Risk

As I write this in October 2022, the market is down over 20% year to date and many investors are concerned, and rightfully so.  Many clients and investors alike are asking, would I be better of just not investing and keeping cash?

Our opinion is that the market is forward-looking, not based on the present, and therefore it has already priced in what it expects to wrong.  Therefore, the biggest risk is not that the S&P 500 will go down further, it is that it will one day, soon, rise and that you will have been out of it and missed it.  The biggest risk is not being a participant in a 20% down market, it is not being a participant in a 100% up market. If you look at the history of the market and its best days, you will see that they cluster directly after a down market period, but missing any one or two of those days, could impact the growth of your portfolio.

Even missing one or two of those best days, can permanently cost you thousands of dollars in growth that you won’t make up.  See chart below.

Therefore, if you are holding cash right now, waiting for the market to start coming back up to feel comfortable with investing again, I would say – deploy it and invest it right now and take advantage of this 20% sale/discount gif the market is giving you.  The market always turns suddenly, and sharply, and nobody rings a bell with a warning as to when that is going to happen, so you need to be in the game, not on the sidelines to capture that.

Here are some other points relating to this:

  1. Don’t run away from volatility – the key to success in a bear market is to have an investment strategy to manage the short-term volatility and to be able to continue to participate in the up market which is far more common, prevalent, and powerful than the bear market.

  2. Don’t take too much stock in pundits, as no one knows what the stock market will do tomorrow or next week, so don’t pay attention to those pundits who tell you to bail out, telling you that you are naïve to stick with your plan.  Great investors stay focused on the long term, and downside volatility is the price stock market investors pay for long term performance.  There have been 26 bear markets since 1929, and all 26 have eventually given way to a bull market, and this one will be no different. Eventually. 

  3. View volatility as an opportunity – take advantage of the ability to buy discounted stocks while they are on sale.

  4. The market is going to have a negative return about 1 in every 4 years. You can expect a drop of over 10% nearly every year. You can expect a drop of over 20% about every 5 years. Successful investors know this. If you can’t accept it, the stock market isn’t for you.

I hope this helps re-frame the paradigm as to how most investors look at the market into a more positive, and optimistic view that will serve you long term.  Don’t follow the herd, lead the pack.

On It with Offit - September 2022

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SEP | 2022

TEAMMATE SPOTLIGHT

Favorite Philanthropy
  • #1 -  St. Jude’s Research Hospital
  • #2 - TAPS – Tragedy Assistance Program for Survivors – peer support network for families of America’s fallen military heroes
Interests
  • My grandchildren
  • Crafts – any kind
  • Traveling - anywhere 
Favorite Offit Advisors Value
  • Treating every client the same as a close family member – doing what is in the best interest of the client 
Your philosophy on client service
  • Every client should feel as though they are the only client. Nothing is as important as their needs.
What gets you out of bed in the morning
  • The excitement of the unexpected. You never know what today will bring.
What could you give a 30-minute presentation about with no preparation?
  • Office methods and procedures 
Name one thing you’d spend more on to get the best quality
  • Clothing and Travel – sorry but I have to name two things!

Ben Offit, CFP® is featured in Baltimore Magazine as a 2023 Five Star Wealth Manager for the Sixth Consecutive Year

To receive the 2023 Five Star Wealth Manager award, researched and managed by Five Star Professional, a wealth manager must meet 10 objective eligibility and evaluation criteria associated with wealth managers who provide quality services to their clients. Wealth managers do not pay a fee to be considered or placed on the final list of 2020 Five Star Wealth Managers.
The Five Star award is not indicative of the wealth manager's future performance.

Ben Shares Thoughts on Revamping Personal Finance to Bloomberg Report

A Bloomberg survey found many professional and individual investors are still counting on the 60/40 portfolio to beat inflation in the long run, but financial planner Ben Offit of Offit Advisors thinks it’s an outdated concept.

Offit says clients only need to hedge against down markets when they’re close to retiring and drawing on their portfolio. Keeping two to five years worth of expenses in fixed income guards against needing to sell stocks into a down market. The rest of the portfolio goes into equities, and “that has nothing to do with a percentage basis,” he said.

Read More
Deposits at U.S. banks are up nearly 30% since before the pandemic, to $17.3 trillion. The New York Times, August 25, 2021


About 1,650 “dollar stores” are expected to open this year. There are more than 34,000 such stores in the U.S., more than all Walmart, Starbucks, and McDonald’s outlets combined. The Washington Post, August 20, 2021
 

“The stock market is a device for transferring money from the impatient to the patient.” Warren Buffet


Foreign automakers now employ more U.S. workers than domestic carmakers do. About 51% of the 999,000 U.S. workers in the motor vehicles and parts manufacturing sector are employed by companies based in other countries up from 34% in 2009. Yahoo!Finance, August 31, 2021


Manhattan is the most densely populated borough in New York City and is home to roughly 1.6 million people. With an area of nearly 23 square miles, more than 72,000 people live in every square mile. If the entire world lived with this population density, all of humanity could fit into the country of New Zealand. Overview


“Status quo, you know, is Latin for ‘the mess we’re in.” Ronald Reagan

10 Steps to Become A Millionaire

Americans can become millionaires in many different ways – including real estate, business, inheritance, etc.  However, I believe the surest path for most Americans is simply by saving and investing, and effectively using your company’s 401k plan.  So here is a clear 10 step path to joining the ranks of America’s 401(k) millionaires:
  1. Sign up for your 401k and do it TODAY. 
  2. If your company offers a match, ALWAYS contribute up the full match, because it is an instant 100% rate of return.  For example, if in order to get a 3% match, you need to contribute 3%, that is a 100% rate of return because irrespective of market performance, the company is putting in for you the same amount that you are.  ALWAYS CONTRIBUTE AT LEAST UP TO THE MATCH, it’s hard to beat from a rate of return perspective.
  3. After you are putting in the minimum to capture the maximum match, save as much as you can.  The only caveat here, is if you have other more important short term priorities or financial obligations.  For example, if you need to put extra money towards buying a new home, or medical expenses those may take priority.  Or if you have high interest debt, like credit card debt at 15%, it may make more sense to pay that off before putting extra money into the 401k.  Once those are paid off, redirect what you were paying towards those expenses or higher interest debt into the 401k!
  4. Take 20 minutes to see if a Financial Planner or CPA can help determine if you are better off using a Roth 401k or a Traditional 401k – the difference in taxes between now and later can really make a difference.
  5. Focus on your asset allocation and investment mix, and start with a bias towards growth and stock allocation.  Too many 401k investors hold far too much of their account in bonds, which should be kept to a minimum for those trying to accumulate long term wealth.  To get to millionaire status, you will need to be more of stock owner, not a bond lender.
  6. Don’t market time!  Every time you get paid, invest each pay period, no matter what is happening in the markets!  IGNORE THE NOISE!  Don’t pay attention to the up and down movement of your account.  Make automatic contributions each pay regardless of how the market is doing right now.
  7. If you have the cash flow to do so, accelerate your contributions as early in the year as possible.  For example, if your plan is to max out your 401k for the year, and you can do it in 6 months instead of 12 months, this gives your money more time to grow.  However, before doing this, check with your HR representative to ensure that you won’t lose any of your company match by doing this.
  8. Pay attention to costs of the funds and get familiar with the costs of each funds, and have a bias towards lower cost funds.
  9. Utilize funds that represent indexes.  For example, you could incorporate funds that represent that S&P 500 index or International Indexes.  Make sure you have diversification across the main asset classes – Large Cap, Mid Cap, Small Cap, International Developed Markets, International Emerging Markets, Real Estate, Commodities.
  10. Wait until you reach full retirement age (at least 59.5 years old) to withdraw your funds, so you won’t pay a penalty for an early withdrawal.  Let tax-deferred compounding work for you as long as possible!
If you follow these tips, for a few decades, it is almost certain you will become a millionaire!

Weak Second Half of August Pushes Stocks & Bonds Lower

HIGHLIGHTS

  • Market strength from July failed to continue through August as stocks and bonds declined during the month.
  • Bonds rallied in July, but the 10-year U.S. Treasury yield rose in August. After ending July at 2.67%, the yield closed August at 3.15%, which created a challenging environment for bonds.
  • No FOMC meeting was held in August, but the annual meeting of central bankers in Jackson Hole, Wyoming was consequential. Chairman Powell’s keynote speech reinforced his current hawkish stance and stocks tumbled.
  • Slower growth is impacting the economy with the Fed poised to continue to hike rates. We don’t believe we are in a recession currently, but the odds of a mild recession next year have increased.
 

EQUITY MARKETS

Equity index returns for August were as follows: The S&P 500 fell -4.08%, the Dow Jones Industrial Average declined -3.72%, the Russell 3000 slid -3.73%, the NASDAQ Composite slumped -4.53%, and the Russell 2000 Index, a measure of small-cap stocks, had the most modest declines, down -2.05%. For the first eight months of 2022, the returns in the same order were as follows: -16.14%, -12.01%, -16.92%, -24.07%, and -17.16%.

After coming off a strong July, stocks could not continue that momentum through August under the pressure of rising interest rates. Stocks started the month off strong, completing close to a 50% retracement from the low point reached by the S&P 500 in mid-June. However, the second half of August proved challenging, and stocks dropped from that point to close the month in negative territory. Likewise, the VIX Index made a rather steady move higher from the mid-point of the month going from below 20 to end August at 25.87. Ongoing concerns of elevated inflation and the Fed’s aggressive response of raising rates continued to weigh on the market and create a more volatile period for stocks during the month.

Although most pockets of the equity market struggled in August, growth came under particular pressure once again. The headline Russell 1000 Index fell -3.84% in August with the Russell 1000 Growth Index down -4.66% and the Russell 1000 Value Index declining a more modest -2.98%. That continued a theme seen most of the year with value outperforming growth on a relative basis and for the first eight months of 2022, those two indices were down -23.19% and -9.85%, respectively.

Small caps had a better relative August compared to large caps, but in contrast to large caps, the bias favored growth. The Russell 2000 Value Index declined by -3.16% in August, while the Russell 2000 Growth Index fell a more modest -0.94%. Year to date, those indices are still down -12.17% and -22.29%, respectively. We continue to use our disciplined approach of seeking out what we believe are high-quality companies with improving business conditions and good prices, and those companies can be found in both the value and growth universe.

International stocks were mixed in August as emerging markets were able to post a modest gain while developed markets declined. The MSCI ACWI ex USA Index, a broad measure of international equities, fell -3.22% for the month, and was off -18.34% so far this year. The MSCI Emerging Markets Index posted a modest gain of 0.42% but was still off by -17.49% year to date. As would be expected with the Russian invasion of Ukraine, emerging Eastern European stocks continue to be the worst regional area this year. Both U.S. and international equities have struggled this year with an aggressive Fed rate hike cycle, high inflation, and slowing economic growth.


FIXED INCOME

Fixed income returns were as follows for August: the Bloomberg U.S. Aggregate Bond Index declined -2.83%, the Bloomberg U.S. Credit Index dropped -2.83%, the Bloomberg U.S. Corporate High Yield Index slid -2.30% and the Bloomberg Municipal Index fell -2.19%. As would be expected, the 30-year U.S. Treasury Index had some of the worst results, dropping -4.41% for the month, while the general U.S. Treasury Index slumped -2.48%. For the first eight months of 2022, the returns for these indices in the same order were as follows: -10.75%, -13.70%, -11.22%, -8.62%, -24.97%, and -9.98%.

After hitting a multi-year closing high of 3.49% on June 14, the 10-year U.S. Treasury yield moved lower from mid-June through July, but that trend reversed course in August as yields rose sharply again. Simply put, the 10-year U.S Treasury yield closed August 1 at 2.60% but closed August 31 at 3.15%. Clearly, that increase in interest rates put pressure on bond prices and returns suffered during August. While short-term returns are negatively impacted by rising rates, long-term returns for bonds have become more attractive with the higher yields being offered.

Bonds have struggled this year as there has been a repricing of interest rates across the yield curve and across bond sectors under this Fed rate tightening cycle. Recall that in 2021, the Bloomberg U.S. Aggregate Bond Index recorded only its fourth annual decline since its inception in 1976 – and the worst year on record for the Agg was 1994 when it declined -2.92%. As it turns out, the year 1994 was another period when the Fed was in a rate hike cycle. We maintain our long-standing position favoring credit versus pure rate exposure in this interest rate environment. We also believe that the role bonds play in a portfolio, to provide stable cash flows and to help offset the volatility of stocks in the long run, has not changed. In fact, bonds are offering higher yields than they have in a number of years and as a result, we believe they are becoming a more attractive asset class.


Source: Clark Capital Benchmark Review, September 2022
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
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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.


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10 Steps to Become a Millionaire

Originally Published in Fulton Living Magazine

Americans can become millionaires in many ways – including real estate, business, inheritance, etc.  However, I believe the surest path for most Americans is simply by saving and investing, and effectively using your company’s 401k plan.  So here is a clear 10-step path to joining the ranks of America’s 401(k) millionaires:

  1. Sign up for your 401k and do it TODAY.  

  2. If your company offers a match, ALWAYS contribute at least the full match, because it is an instant 100% rate of return.  For example, to get a 3% match from the company, you need to contribute 3%, which is a 100% rate of return. Irrespective of market performance, the company is putting in for you the same amount that you are.  ALWAYS CONTRIBUTE AT LEAST UP TO THE MATCH, it’s hard to beat from a rate of return perspective.

  3. After you are putting in the minimum to capture the maximum match, save as much as you can.  The only caveat here, is if you have other more important short-term priorities or financial obligations.  For example, if you need to put extra money towards buying a new home, or medical expenses those may take priority.  Or if you have high interest debt, like credit card debt at 15%, it may make more sense to pay that off before putting extra money into the 401k.  Once those are paid off, redirect what you were paying towards those expenses or higher interest debt into the 401k!

  4. Take 20 minutes to see if a Financial Planner or CPA can help determine if you are better off using a Roth 401k or a Traditional 401k – the difference in taxes between now and later can really make a difference.

  5. Focus on your asset allocation and investment mix and start with a bias towards growth and stock allocation.  Too many 401k investors hold far too much of their account in bonds, which should be kept to a minimum for those trying to accumulate long-term wealth.  To get to millionaire status, you will need to be more of a stock owner, not a bond lender.

  6. Don’t market time!  Every time you get paid, invest each pay period, no matter what is happening in the markets!  IGNORE THE NOISE!  Don’t pay attention to the up and down movement of your account.  Make automatic contributions each pay regardless of how the market is doing right now.

  7. If you have the cash flow to do so, accelerate your contributions as early in the year as possible.  For example, if your plan is to max out your 401k for the year, and you can do it in 6 months instead of 12 months, this gives your money more time to grow.  However, before doing this, check with your HR representative to ensure that you won’t lose any of your company match by doing this.

  8. Pay attention to costs of the funds and get familiar with the costs of each funds and have a bias towards lower cost funds.

  9. Utilize funds that represent indexes.  For example, you could incorporate funds that represent the S&P 500 index or International Indexes.  Make sure you have diversification across the main asset classes – Large Cap, Mid Cap, Small Cap, International Developed Markets, International Emerging Markets, Real Estate, Commodities.

  10. Wait until you reach full retirement age (at least 59.5 years old) to withdraw your funds, so you won’t pay a penalty for an early withdrawal.  Let tax-deferred compounding work for you as long as possible!

If you follow these tips, for a few decades, it is almost certain you will become a millionaire!


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.

On It with Offit - August 2022

*|MC:SUBJECT|*
AUG | 2022

Offit Advisors' New Columbia Office is Officially Open for Business!

Meet With Us

Great Moments from the OA Summer Outing

Enjoy our recap of a fantastic evening at the Blackwell Barn & Lodge.
Time-Sensitive Financial Planning Tips for MD Residents
  • If you are a Maryland Resident and have incurred at least $20,000 in undergraduate or graduate student loan debt, and you still have at least $5,000 in outstanding student loan debt, you can apply for the Maryland Student Loan Debt Relief Tax Credit.  Apply before September 15th, 2022!
  • If you are a business owner in Maryland with employees on payroll, you may be required to offer your employees a way to save for retirement starting September 2022!  Maryland will require employees to remit employee contributions deducted from payroll into a Maryland Retirement Savings Program Trust IRA and employees are automatically enrolled to contribute 3% of their compensation or a business owner must sponsor their own retirement plan.  Exempt business are those that have less than 10 employees, Startups that have operated less than two years, or businesses that offer or have offered within the past two years a payroll-based retirement savings plan such as a 401k or Simple IRA.  Employers are not required to make matching contributions.  If you have questions about this or want to start a retirement plan for your business, contact us today!
More than 500 food delivery drivers were surveyed about their job and found that most of them judge us on what we buy, most have been accused of stealing packages, and 80% say they’ve eaten some of the food they’re delivering. Car and Driver, June 4, 2022

- Japan has such a punctual culture that if a train is delayed five minutes or longer, you are handed a delay certificate at the arriving station to verify for your teacher or boss why you were late. Morning Brew, May 28, 2022

In 2021, the House Energy and Commerce Committee estimated that CO2 emissions from digital mining for bitcoin and Ethereum were equivalent to the tailpipe emissions from more than 15.5 million gasoline-powered cars on the road every year. Other estimates put this figure much higher. Axios, Jan 19, 2022

New home sales plunged in April, falling 16.6% from March. New home sales, which make up more than 10% of all U.S. home sales, are tracked when contracts are signed while existing home sales are tracked when contracts close. That makes new-home sales a leading indicator of where the market is headed. Bloomberg, May 24, 2022

- More than 500 food delivery drivers were surveyed about their job and found that most of them judge us on what we buy, most have been accused of stealing packages, and 80% say they’ve eaten some of the food they’re delivering. Car and Driver, June 4, 2022

The average four-year-old child laughs 300 times a day. By contrast, it takes more than two months for the average 40-year-old adult to laugh that many times. Hidden Brain Podcast

On a typical day in the United States, more people ride on New York City’s subway than fly in airplanes. Morning Brew, May 28, 2022

- “It’s true hard work never killed anybody, but I figure, why take the chance.” Ronald Reagan
 

July Provided a Much-Needed Reprieve for Stocks and Bonds

HIGHLIGHTS

  • After enduring the worst six-month start to a year since 1970, the S&P 500 bounced back with strong gains in July – its strongest month since 2020. Furthermore, bonds also enjoyed solid results as yields continued to fall from their mid-June peak.
  • The 10-year U.S. Treasury yield ended June at 2.98% following a multi-year closing high of 3.49% on June 14th. Rates continued to drop in July, ending the month at 2.67%. This sharp decline in rates helped bonds advance in July.
  • For the second straight month, the Fed made a bold move by raising the Fed Funds Target Rate by another 0.75%. The Fed has raised rates by 225 basis points since March. Strong market gains leading up to and following the FOMC meeting seemed to reflect that this hike was largely priced into the market.
  • U.S. economic growth has moderated in light of tighter financial conditions. Inflation readings remained high and manufacturing slowed, but the job market continued to make solid advances. The housing market is starting to feel the impact of higher mortgage rates as home market activity has slowed as well.
  • We believe the economy is going through a growth scare, but we still expect positive economic growth for all of 2022. Corporate earnings will be important to monitor as earnings estimates have come down only modestly so far this year and more reductions might be necessary as the economy slows.
 

EQUITY MARKETS

Stocks behaved much better in July with gains across the board. As stocks advanced, volatility dropped to its lowest level since April. While this reprieve in the stock market was welcomed, the broad equity indices are still well below levels from the beginning of the year. We had expected a more volatile and challenging first part of 2022 and a more constructive market in the latter part of the year. One month does not make a trend, but the second half of 2022 has clearly started on much stronger footing than the first half of the year. Concerns still exist about this Fed rate hike cycle and how much that might slow economic growth, even to the point of a potential recession. Inflation also remains elevated and midterm elections loom. However, much of that seems to have already been discounted in stock prices, and as investors look beyond these near-term challenges, opportunities exist. Style and size were consequential in July with growth and small/mid-caps rebounding the strongest compared to large-cap value. Gains were enjoyed across the board, but those areas that had been under the most pressure so far this year enjoyed the best results in July. With very little fanfare, the S&P 500 closed the month +12.6% from its closing low on June 16th.

We still believe that the value/growth disparity that reached a peak in 2020 will likely continue to shift as we move through 2022 with value improving on a relative basis. That has clearly been the case so far this year, but July saw a shift to this trend. However, we believe value will still likely outperform growth on a relative basis over the near future. This better relative performance of value stocks so far this year has coincided with a rise in interest rates, which can put pressure on growth stocks. Likewise, as rates have dropped from their mid-June highs, growth stocks have rebounded. We continue to use our disciplined approach of seeking out what we believe to be high-quality companies with improving business conditions at what we believe are good prices, which those companies can be found in both the value and growth universe.

The numbers for July were as follows: The S&P 500 gained 9.22%, the Dow Jones Industrial Average advanced 6.82%, the Russell 3000 rose by 9.38%, the NASDAQ Composite rallied 12.39%, and the Russell 2000 Index, a measure of small-cap stocks, jumped 10.44%. For the first seven months of 2022, the returns in the same order were as follows: -12.58%, -8.60%, -13.70%, -20.47%, and -15.43%.

Looking closer at the impact of style and the clear relative outperformance of growth in July, the headline Russell 1000 Index advanced 9.31% in July while the Russell 1000 Growth Index rallied 12.00% and the Russell 1000 Value Index gained 6.63%. For the first seven months of the year, those two indices were down -19.44% and -7.08%, respectively. Growth outperformed value in July, but value has shown better relative results for the majority of the year. Small caps had a better overall July than large caps, with the bias favoring growth in this space as well. The Russell 2000 Value Index advanced 9.68% in July, while the Russell 2000 Growth Index rallied 11.20%. Year to date, those indices are still down -9.30% and -21.55%, respectively.

International stocks were mixed in July and clearly lagged U.S. markets. The MSCI ACWI ex USA Index, a broad measure of international equities, rose 3.42% for the month, and was off -15.63% year to date. The MSCI Emerging Markets Index actually slid modestly lower in July, down -0.25% and was off by -17.83% year to date. As would be expected with the Russian invasion of Ukraine, emerging Eastern European stocks have been the worst regional area this year.
 

FIXED INCOME

The yield on the 10-year U.S. Treasury continued to move lower in July after hitting a multi-year closing high of 3.49% on June 14th. The market focus seems to be shifting toward recession fears compared to inflation worries. As a result, bond yields further out on the yield curve have declined, but short-term rates, due to the ongoing Fed tightening cycle, have moved higher. The yield curve has been flattening over the last several weeks, a more typical outcome one would expect during a Fed tightening cycle. Overall, the 10-year U.S. Treasury ended June at 2.98% and dropped to 2.67% by the close of July. It is worth remembering that the 10-year yield ended 2021 at 1.52%, so this year has seen rates move significantly higher. Although bonds have been under pressure so far this year, the last several weeks have been better for bond results as rates have turned lower.

Fixed income returns were as follows for July: the Bloomberg U.S. Aggregate Bond Index gained 2.44%, the Bloomberg U.S. Credit Index rose by 3.04%, the Bloomberg U.S. Corporate High Yield Index rallied 5.90% and the Bloomberg Municipal Index gained 2.64%. The 30-year U.S. Treasury Index gained as yields fell and advanced 2.70% for the month, while the general U.S. Treasury Index gained 1.59%. For the first seven months of 2022, the returns for these indices in the same order were as follows: -8.16%, -11.19%, -9.12%, -6.58%, -21.51%, and -7.69%.

Clearly, bonds have struggled this year as there has been a repricing of interest rates across the yield curve and most bond sectors. Recall that in 2021, the Bloomberg U.S. Aggregate Bond Index recorded only its fourth annual decline since its inception in 1976 – and the worst year on record for the Agg was 1994 when it declined -2.92%. As it turns out, the year 1994 was another period when the Fed was in a rate hike cycle. We maintain our long-standing position favoring credit versus pure rate exposure in this interest rate environment. We also believe that the role bonds play in a portfolio, to provide stable cash flows and to help offset the volatility of stocks in the long run, has not changed.


Source: Clark Capital Benchmark Review, August 2022
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
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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.


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