The holiday season is just a short time away, which means the shopping season is about to be in full swing. Shopping for holiday gifts is stressful but also a little fun, especially when you think about the joy you will bring to those who receive them. But in all the rush to get everything done in time, it is easy to forget smart shopping techniques and over-spend or purchase a lot of items that you do not need. So this year, why not try some smart shopping tips to help you get everything you need, without the regret of having to pay it off after the holiday season? Start With a Plan Developing a plan is one of the easiest ways to make sure that you buy for everyone on your list with the money you have available to spend. Start your plan with a budget and then make a list of everyone you need to buy for. Next, come up with a few gift ideas for each person. Then, research pricing and find the gift for each one that will fit in with the amount you have budgeted for gifts. Stick to your list and avoid any last-minute splurges. Focus on the Big Sales Days While one of the most well-known shopping days to get amazing deals is Black Friday, don’t forget some of the other popular holiday shopping sales days such as Cyber Monday and Christmas Eve. If you are buying gifts for family or friends that you will not see until after the holidays, consider shopping the amazing sales the day after Christmas when the stores are deeply discounting their items to help reduce their surplus

A new wave of COVID-19 cases threatens to trip up the economy. Increasing cases in Europe and the United States have brought new restrictions on activities, but the market doesn’t appear to be fazed by the recent outbreaks. Progress on developing vaccines has provided a clear boost to sentiment, but prospects for a divided Congress and the potential for more fiscal policy support also may be playing a role. New Wave of COVID-19 Just as the economic recovery was beginning to gain some steam, COVID-19 cases have been rising dramatically in several regions around the world [FIGURE 1]. The change of seasons is adding to concerns, as colder weather shifts more activities indoors—increasing the chances of viral transmissions. This has prompted many governments to take greater action to try to curb the spread of COVID-19. Several countries and many states in the United States have rolled back reopening plans and implemented new restrictions such as school closures, nighttime curfews, and even stay-at-home orders. Economic Effects of Lockdown 2.0 The new round of restrictions, dubbed “lockdown 2.0,” has already begun to cause a decline in economic activity in the Eurozone. Markit’s composite Purchasing Managers Index (PMI) for the Eurozone, a survey of purchasing managers’ spending plans released November 23, slipped back into contractionary (sub-50) territory at 45.1, dragged down by the services component. Manufacturing activity remained expansionary at 53.6—highlighting the outsized effects that the COVID-19 outbreak has had on service industries. While the United States has not implemented the same degree of restrictions as Europe, rising cases already have had an effect on consumer and business behavior. Restaurant-booking data from OpenTable has declined since mid-October, and weekly jobless claims have begun to

The post-election environment and positive developments toward a COVID-19 vaccine have led to a surge in stock prices. The added clarity on these two fronts has boosted sentiment, which may present a risk in the near term as stock prices are near all-time highs. A November to Remember The reaction from stocks since the US election has been truly impressive. The S&P 500 Index is up 8.8% for the month, on pace to be the best November for the S&P 500 in 40 years. Small caps have also soared, with the Russell 2000 Index up 16%, which would be its second-best month ever. Although we remain longer-term bullish on equities, there are some signs that sentiment could be getting a little frothy at the moment, which could increase the odds of a pullback. Technicals Supportive of Future Strength On November 9, more than 71% of the stocks in the S&P 500 hit a one-month high, the third-highest reading using data back to 1990. Not only does this tell us that participation in the post-election rally has been extremely broad and not limited to only a few heavily weighted names in the index, but historically this has been an extremely positive signal for the next year. Returns can be quite weak in the near term after more than 65% of stocks reach a one-month high, but returns over the next 12 months not only have been far above average, but have been positive in all seven observed instances [Figure 1]. In fact, nearly every measure of breadth and participation we monitor shows a similar trend. Looking at longer-term indicators, 90% of the stocks in the S&P 500 are above their respective 200-day

Retirement is an exciting time for many, and the reward for years of hard work. While there is no set age for retirement, it is important to be prepared before you make the leap, so that you enjoy your retirement and financial stability during it. If you are considering retiring soon, below are some quick considerations to make to know for sure. Have You Secured Healthcare Coverage? One of the largest expenses during retirement could end up being your healthcare expenses, especially if you do not have a healthcare plan in place when you retire. While you will become eligible for Medicare at the age of 65, if you retire before then, you will want to find coverage to bridge the gap between the time your current coverage ends and Medicare coverage begins. You may want to look at the cost of private insurance, see if you are eligible to be on a spouse’s plan, or COBRA your current plan for a period of time after your employment ends. Always be sure to have some kind of medical coverage, even if it has a high deductible, as lack of coverage may lead to significant expenses. Have You Eliminated Most of Your Debt? Going into retirement with major debt may lead to you burning through your savings quicker than you anticipated. If you have stayed on top of your debt and have paid off your mortgage, lines of credit, large loans, and high credit card balances, you are likely in a good position to consider retirement. Do You Have Enough Money Saved? When planning for retirement, you likely had a retirement goal, which would provide you with at least roughly 75%

Individual retirement accounts (IRAs) are one of the most common assets people rely on to save and invest for retirement. In fact, more than a third of households in America own an IRA. If you’re thinking of opening an IRA for the first time, it’s a good idea to review the rules. Even if you have had an IRA for years, note that laws change. The Different Types There are two main types of IRA accounts to choose from: traditional and Roth. The timing of the tax advantages is the main difference between the two. For a traditional IRA, contributions are tax deductible and tax is paid upon withdrawal. Roth IRA contributions are taxed in the year they are made, and qualified withdrawals are tax-free. Both types are almost equally popular: 36% of American households have Roth IRAs 35% of American households have traditional IRAs 26% of American households contribute to both There are also employer-sponsored IRAs. These may fall into either of the two categories. Contribution Limits The IRS set a 2020 annual limit of $6,000 for people under 50 years old. People who are 50 years and older can make a total contribution of $7,000. What some breadwinners do to maximize contributions is to file joint tax returns and open a second account for their spouses. They then make additional contributions to this account. The IRS states that the combined contribution cannot exceed the lesser of the couple’s taxable income or the contributor’s individual limit times two. Eligibility The IRS considers net income from self-employment, gross wages and gross salaries as qualifying income. Too much income, however, and IRA contributions can get reduced or prohibited altogether: Qualifying Widower

Corporate America delivered quite an encore to a surprisingly good second quarter earnings season with more of the same in the third quarter, despite a higher bar. S&P 500 Index companies didn’t quite match the biggest upside surprise ever—but they came close. We’re optimistic about the earnings recovery in 2021 and beyond, and outline five key takeaways for investors. An Encore Performance Earnings blew away expectations during the second quarter as the unprecedented COVID-19 lockdowns early in the quarter, followed by the uncertainty and unevenness of the reopening and limited guidance from corporate leaders, caused analysts to badly miss with their forecasts. In the third quarter, analysts had more information and the environment included fewer twists and turns, which should have made predicting results much easier. Still, analysts were overly pessimistic by nearly the same margin, as earnings results far surpassed expectations. Putting numbers to it, with more than 90% of S&P 500 companies having reported quarterly results so far, S&P 500 earnings are tracking to a 7.5% year-over-year decline, roughly 14 percentage points better than September 30 estimates (source: FactSet) [Figure 1]. Revenue is tracking to only a 1.7% year-over-year decline, a solid 1.9 percentage points above prior estimates. Other numbers put the strong third quarter into perspective: Big upside. The average S&P 500 company surpassed consensus earnings estimates by 19%. The second quarter’s 22% upside earnings surprise was the highest ever recorded by FactSet, and this quarter’s level—despite a higher bar—was not far behind. Average revenue upside of 2.6% is the highest FactSet has ever recorded (their data goes back to 2008). Broadly positive results. The percentage of companies beating earnings expectations stands at 84%, tied for the highest percentage since

A successful investor maximizes gain and minimizes loss. Though there can be no guarantee that any investment strategy will be successful and all investing involves risk, including the possible loss of principal, here are six basic principles that may help you invest more successfully. Long-term compounding can help your nest egg grow It’s the “rolling snowball” effect. Put simply, compounding pays you earnings on your reinvested earnings. The longer you leave your money at work for you, the more exciting the numbers get. For example, imagine an investment of $10,000 at an annual rate of return of 8 percent. In 20 years, assuming no withdrawals, your $10,000 investment would grow to $46,610. In 25 years, it would grow to $68,485, a 47 percent gain over the 20-year figure. After 30 years, your account would total $100,627. (Of course, this is a hypothetical example that does not reflect the performance of any specific investment.) This simple example also assumes that no taxes are paid along the way, so all money stays invested. That would be the case in a tax-deferred individual retirement account or qualified retirement plan. The compounded earnings of deferred tax dollars are the main reason experts recommend fully funding all tax-advantaged retirement accounts and plans available to you. While you should review your portfolio on a regular basis, the point is that money left alone in an investment offers the potential of a significant return over time. With time on your side, you don’t have to go for investment “home runs” in order to be successful. Endure short-term pain for long-term gain Riding out market volatility sounds simple, doesn’t it? But what if you’ve invested $10,000 in the

When one door closes, another opens—and entrepreneurs who keep this mantra in mind are more likely to remain on top once the world has moved beyond the novel COVID-19 pandemic. What can business owners and other entrepreneurs do to adapt to a consistently shifting set of circumstances? Identify and Adapt to New Market Needs COVID-19 has majorly reshaped the way Americans go about many parts of their everyday lives, from grocery delivery to telemedicine. Some consumers have expressed their preference for many aspects of the “new normal,” particularly those that provide greater convenience or allow them to spend time focusing on more pressing matters. This means that if you’re still trapped in the “business as usual” rut six months or more into this pandemic, it may be time to make some changes. If you’re able to identify new market needs among the demographics you serve, you may find that your business is uniquely well-positioned to meet these needs during the COVID-19 pandemic. Companies that adapt and find ways to meet their customers where they are, rather than where they were pre-COVID, are the most likely to thrive in the post-pandemic economy. Get Out of Survival Mode Nationwide shelter-in-place orders in early 2020 sent many entrepreneurs scrambling to find a way to stay afloat amid an uncertain future. But as the pandemic now appears to be in for the long haul, it’s time to break out of “survival mode” and begin to make the types of long-term decisions that are a key part of the entrepreneurial package. By planning your next moves now, even if the situation continues to evolve, you’ll be in a better spot to make tough decisions down the road. Revisit Your Business

By the last third of the calendar year, you’re likely to have a pretty good idea of what your annual income will be and whether any major expenses or big life changes await you. This can allow you to engage in more robust tax planning, creating the first draft of your federal and state income tax returns to see what factors you can tweak and what goals you can set to reduce your overall tax burden. Read on for some points to consider as you close out 2020. Maximize Your Retirement Savings By knowing your adjusted gross income (AGI) and top marginal tax rate, you’re better able to maximize the impact of your retirement contributions based solely on their tax status. Contributing to a traditional IRA or 401(k) can help reduce the amount of your gross income that is subject to tax, while contributing to a Roth IRA or 401(k) can allow you to pay taxes now and benefit from tax-free growth later. By early fall, you should also have a better idea of whether you’ll come close to the income limits for traditional or Roth IRA contributions. In some cases, it may make sense to push off irregular compensation like bonuses or stock payouts into the next calendar year (if you can) if receiving these funds in 2020 will cause you to phase out of certain tax benefits. Investigate a Roth or Backdoor Roth The Tax Cuts and Jobs Act of 2017 expires in 2026, and many expect tax rates to increase significantly by then. Contributing to a Roth IRA directly (or through a “backdoor Roth” conversion) can allow these funds to be taxed at today’s lower rate and

Heading into the election, polling data and market signals disagreed on how close the presidential election would be, with market signals calling the race much closer—which turned out to be accurate. Now that we have more clarity on the results of the election, we can review what we believe will be some of the key market implications going forward. Biden Wins but Senate Yet to be Decided Former Vice President Joe Biden has been elected the 46th President of the United States, defeating President Donald Trump in a tight race. Based on the polls and some market signals, the outcome of the presidential election may not have been much of a surprise. The Senate was a different story. Conventional wisdom expected the Senate to go the same way as the top of the ticket. But the stronger-than-expected performance by some Senate Republicans considered vulnerable means that the Democrats will have to win both Georgia Senate seats in January runoffs—a tall task in a traditionally conservative state—to reach 50 seats and take control of the Senate (Vice President-elect Kamala Harris would break any tie). Here we focus on the most likely outcome—a split Congress under Biden. A Split Congress Changes Policy We view a split Congress as market friendly because it probably would take Biden’s most ambitious policy proposals off the table. Most importantly, from a market perspective, tax increases to fund Biden’s green energy and infrastructure investment programs may be nearly impossible to get through the Senate, although smaller targeted tax increases might be possible. A fifth COVID-19 relief bill may be the first priority for the administration, but a package would have to be smaller than previously discussed to