Many people start out managing their own investments. But as their earnings and assets grow, their financial needs and challenges become more complex—and continuing to go it alone could prove costly in terms of investing miscues. Consider three common mistakes that can reduce returns and increase anxiety: 1. Trying to Time the Market Investors may be tempted to cash out of the stock market to avoid a predicted downturn. But accurately forecasting the market’s direction to time when to buy and sell is a guessing game. Missing only a brief period of strong market performance can drastically affe ..read more

529 plans are a type of tax-advantaged investment account that are widely considered the best way to save for college. These plans offer compelling federal and state tax benefits and potential for tax-free growth over time, provided the money is used for qualified education expenses. In a recent cover story by InvestmentNews titled “529 Savings Plans Are Not Just for College Anymore”, Gap Financial was asked to participate in the article by discussing benefits other than education savings.  Some of those advantages include: 529 Plans can be used as an estate planning tool 529 contri ..read more

IPOs: Profiles Are High. What About Returns? Initial public offerings (IPOs) often attract initial public interest—especially when familiar brands become broadly available to investors for the first time. In recent months, investors have had the opportunity to buy shares of ride‑hailing networks Uber and Lyft, workplace productivity services Zoom and Slack, and other high-profile businesses ranging from Pinterest to Beyond Meat. News outlets contribute to the frenzy, building anticipation, tracking the early hours of trading, and casting judgment on the IPO’s success. Investors, perhaps lured ..read more

What Does Schwab’s Purchase of USAA Mean to Me? On July 25, 2019, Charles Schwab announced plans to acquire assets of USAA’s Investment Management Co., including brokerage and managed portfolio accounts, for $1.8 billion in cash. If you have investment accounts at USAA, you’re likely asking yourself, “What does this mean to me?”  Even though you had no input in the decision doesn’t mean you’re not entitled to answers to some basic questions: Will my asset management fees remain the same or move to Schwab’s standard rate of 1.35%? To what extent will timeliness and quality ..read more

Whether you’ve been investing for decades or are just getting started, at some point on your investment journey you’ll likely ask yourself some of the questions below. Trying to answer these questions may be intimidating, but know that you’re not alone. Gap Financial is here to help. While this is not intended to be an exhaustive list, it will hopefully shed light on a few key principles, using data and reasoning, that may help improve investors’ odds of investment success in the long run. 1) What sort of competition do I face as an investor?&n ..read more

Over the course of a summer, it’s not unusual for the stock market to be a topic of conversation at barbeques or other social gatherings. A neighbor or relative might ask about which investments are good at the moment. The lure of getting in at the right time or avoiding the next downturn may tempt even disciplined, long-term investors. The reality of successfully timing markets, however, isn’t as straightforward as it sounds. OUTGUESSING THE MARKET IS DIFFICULT IF NOT IMPOSSIBLE Attempting to buy individual stocks or make tactical asset allocation changes at exactly the “right” time presents ..read more

The Randomness of Global Equity Returns Investment opportunities exist all around the globe. Across more than 40 countries, there are over 15,000 publicly traded companies.[1] If you listen to the news, however, some countries may seem like better places to invest than others based on how their economies and stock markets are doing at the time. Fluctuations in performance from year to year only add to the complexity, providing little useful information about future returns. Daunted by the prospects of sorting it out, some investors look to the place they know best—their home market. There ..read more

A quick online search for “Dow rallies 500 points” yields a cascade of news stories with similar titles, as does a similar search for “Dow drops 500 points.” These types of headlines may make little sense to some investors, given that a “point” for the Dow and what it means to an individual’s portfolio may be unclear. The potential for misunderstanding also exists among even experienced market participants, given that index levels have risen over time and potential emotional anchors, such as a 500-point move, do not have the same impact on performance as they used to. With this in mind, we exa ..read more

As 2018 draws to a close, it is time to consider year-end strategies and begin considering your finances for the new year. To help you get started, we've put together an organizational list of key planning items to consider. Financial Planning Checklist Consider charitable giving The Tax Cuts and Jobs Act of 2017 began in January of this year. One key change is the near doubling of the standard deduction: the amount a taxpayer gets if he/she doesn’t itemize write-offs like mortgage interest and charitable donations on Schedule A. This write-off is now $12,000 for single filers and $24,000 for ..read more

Sellers were out in force on the market today after negative news on the economy. It's a common line in TV finance reports. But have you ever wondered who is buying if so many people are selling? The notion that sellers can outnumber buyers on down days doesn’t make sense. What the newscasters should say, of course, is that prices adjusted lower because would-be buyers weren’t prepared to pay the former price. The Economic Equilibrium What happens in such a case is either the would-be sellers sit on their shares or prices quickly adjust to the point where supply and demand come into balance ..read more