You, Your Financial Well-Being and the Federal Reserve

Beginning in December 2016, the U.S. Federal Reserve (the Fed) had been gradually ratcheting up the federal funds rate, until it reached its December 2018 level of 2.25–2.50%. Effective August 1, 2019, that changed: The Fed lowered the federal funds rate by a quarter point, to 2.20–2.25%. Even though the announcement was not a huge surprise, it was the first rate decrease since the thick of the 2008 Economic Crisis. As such, the move is receiving wide media coverage accompanied by the usual outpour of opinions on whether it will help or hurt us.

What does the rate change mean to your financial well-being? Is > SEE MORE

Tom Geoghegan

Posted by:

Tom Geoghegan

Founder and Private Wealth Advisor
Beacon Hill Private Wealth

Protecting What’s Yours (While You’re Alive)

Whether due to disability, dementia, or simply enjoying an exotic vacation, there are many ways you can end up unavailable to make critical financial or health care choices for yourself or your loved ones. If you’ve not documented your desires in advance, it can add extra stress for everyone, plus the outcomes may not be what anyone had in mind!

One source of confusion over when and how to protect what’s yours is understanding which legal logistics apply during your lifetime, and which don’t come into play until after you pass. > SEE MORE

Tom Geoghegan

Posted by:

Tom Geoghegan

Founder and Private Wealth Advisor
Beacon Hill Private Wealth

Should You Worry About an Inverted Yield Curve?

Ever since December 3, 2018, when the yield curve inverted (with the yield of 2.83 percent on the five-year Treasury note one basis point lower than the yield of 2.84 percent on the three-year Treasury note), I have been receiving calls and emails from investors worried about the impact of an inverted yield curve. The reason they are anxious is the much-publicized relationship between inversions and recessions — inverted yield curves have predicted all nine U.S. recessions since 1955.

You can observe the relationship in the following chart from WealthManagement.com, which shows the yield spread between two-year Treasury notes and 10-year Treasury notes (the traditional measure for > SEE MORE

Set Your Goals

When a new client comes to our office for the first time, we typically start by asking “How can we help?” Starting a relationship with a financial planner is almost always precipitated by something happening in the client’s life—they want to retire soon, they just received an inheritance, they just learned they are seriously ill, they are dealing with the complexities of life with kids, parents, a house, jobs.

We work with people of all ages and in all stages of life. Most of the time there are multiple goals and part of our job is to help clients prioritize how they want to tackle them. Let’s take a moment to look at some typical goals by age to get you thinking about your own situation.

Planning in your 20s

Getting off to a good start in life is essential. Developing good money habits can create a lifetime of financial joy. Do you see anything in this list > SEE MORE

Are TIPS Cheap?

I’ve been getting lots of questions about whether Treasury inflation-protected securities (TIPS) are a good investment, with the yield at just 0.32% on the five-year. To answer the question of whether TIPS are cheap or expensive relative to Treasuries, I’ll discuss how to make the determination of whether to purchase TIPS or nominal fixed-income securities. To begin, we need to recognize there are two ways one can hold TIPS and nominal bonds: purchase the bonds individually or invest in mutual funds/exchange traded funds (ETFs). When investing through taxable accounts and IRAs, one can do either. However, in corporate > SEE MORE