Introduction to Planned Giving

By: Brian Tullio

My name is Brian Tullio and I am excited to introduce myself as the newest member of Fairway Wealth Management.  I am a licensed attorney, and I hold a Master of Laws in Taxation as well as a CERTIFIED FINANCIAL PLANNER ™ Certification.  After practicing law at a boutique tax law firm, I spent over four years at The Cleveland Clinic Foundation as a planned giving professional creating sophisticated charitable plans for high net worth donors.  During that time, I experienced first-hand the dynamic and valuable advice financial advisors provide their clients.  I am thrilled to join the Fairway team, where I can utilize my unique professional expertise to help provide independent, sophisticated counsel to clients.

Until my time in philanthropy, I was unfamiliar with the phrases “planned giving”, or “gift planning”.  In short, the phrases refer to the process by which a donor can make a significant charitable contribution during their lifetime, or at death through their estate plan.  These types of gifts require additional thought and careful planning when compared to an average cash donation.  However, that additional planning is often time well spent, as planned gifts can yield significant financial and tax advantages.

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Market Commentary 4/30/2020

By: Matt Garrott

Did the month of April feel more like a year to you?  The market might agree as stocks gained more in April than they do in the average year.  The 12.8% gain is the best monthly return since 1974, but comes on the heels of March’s 12.4% decline.  Back-to-back double digit whipsaw returns haven’t happened since the bottom of the 1974 bear market.

The S&P 500 is down 9% this year, but it says more that it dropped 34% from its all-time high then rallied 30%.  The S&P 1000 (Small and Mid Cap US stocks) and the MSCI EAFE (Developed International stocks) had similar large fluctuations and are down even more on the year.  The market has endured countless bull and bear runs.  This is its first bear sprint. 

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Fairway Wealth Management Named a National 2020 Best Places to Work for Financial Advisers by InvestmentNews

Independence, OH – April 30, 2020 InvestmentNews has recognized Fairway Wealth Management as a 2020 Best Places to Work for Financial Advisers.  Fairway was chosen as one of this year’s top-75 firms nationwide based on employer and employee surveys, evaluating company culture, benefits, career paths, and more.

“We take great pride in not only delivering outstanding service and advice to our clients, but also providing an environment for our employees to grow, succeed, and be vested in the interests of both our clients and our firm,” said Mark Weiskind, COO and one of Fairway’s founding partners.  “While our employees work hard, we really emphasize a good work/life balance and want a relaxed, flexible and fun work environment.”

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9 Ways to Wait Out the Remainder of the Quarantine

By: Mark Weiskind

As a firm, we’ve been blogging and talking to clients like crazy about the markets, the economy, investment strategy, etc.  Much of that communication comes from Matt Garrott, our Director of Investment Research.  But you may not know that Matt also maintains his own website and blog, at www.matthewgarrott.com.  While much of his blog is investment-oriented and aligns with Fairway’s content, he also posts about a wide array of other topics.  I thought his most recent post, copied below, was particularly applicable for many of us who are stuck at home and looking for productive things to do.

9 Ways to Wait Out the Remainder of the Quarantine

 

 

 

 

 

 

 

 

 

 

Got a deck of cards of Windows 95?

POSTED BY: MATT APRIL 14, 2020

Depending on how prepared you were, the early days might have been manic, establishing supply lines and hoarding toilet paper.  As churches and bars (trying to cover all bases here) stopped regular service it sank in that this was something that would last weeks, not days.  Now you’ve reached the end of the internet and you hold a strong opinion on Tiger King.  Here are 9 ways to wait out the remainder of the quarantine.  Some are productive while others are just stress relievers.  Regarding links: I don’t get anything from anyplace I’m linking to and I’m not endorsing anything, but hopefully they are a good place to start if something catches your eye.  In no particular order:

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Market Commentary Q1 2020

By: Matt Garrott

What Happened this Quarter

The year in headlines started with the death of an Iranian General.  Concerns that this would start World War III fizzled and the markets shrugged their shoulders as even oil markets barely flinched.  Stories started circulating in January about a virus in China.  The United States was consumed with impeachment, confusion over the Iowa caucus, and the idea that Bernie Sanders was the frontrunner to win the Democratic primary.  The coronavirus shut down China, setting off ripples throughout the global supply chain.  On top of that, Russia and Saudi Arabia bottomed out oil prices over a disagreement in production.  Volatility roiled the US stock markets, setting off circuit breakers on multiple days.  COVID-19 spread across Europe and finally the United States.  Individual states have responded with quarantines and the nation has mobilized to support the healthcare system.  The press got their World War III – the enemy is a virus.

The S&P 500 peaked on February 19th.  By March 23rd, the S&P 500 was down 33.8% from the high.  This was the fastest bear market ever.  It then rallied 17.6% with the Dow Jones Industrial Average rallying over 20%.  In total, the S&P 500 is down 19.6% this quarter.  The market has made up some ground since the bottom, but high levels of volatility indicate that the bear may not be done.  The average absolute daily market move in March was 5%.  The historical average is about 0.70%.

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Tax Day Extended

By: Franco DiLiberto

Tax Day has been extended! On March 21, 2020, the IRS announced that the federal income tax filing due date for 2019 returns is automatically extended from April 15, 2020 to July 15, 2020.  This extension applies to all taxpayers, including individuals, trusts, estates, etc.  This new filing date also extends the deadline for paying any 2019 federal tax due, along with penalties and interest.  Further payments on 2019 taxes are not due until July 15, 2020 and interest and penalties will not begin to accrue until July 16, 2020.  Unlike an earlier iteration of the extension, there is no limit on the amount of the payment owed.  As this is an automatic extension, no form or action is needed by taxpayers to qualify for this extension.

What about 2020 estimated tax payments? The due date for 1st quarter 2020 estimated taxes has also been extended to July 15,2020.  However, 2nd Quarter 2020 estimated taxes have not been extended, and they remain due June 15, 2020.  The due dates for contributions to an IRA or HSA have been extended to July 15, 2020.  While there is some expectation that most states will follow suit and extend their filing deadlines to July 15 as well, most have not yet done so, including Ohio.  We should have more clarity soon in the coming days as additional guidance is released.

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Fairway Market Perspective

By: Mark Weiskind

I guess I can say I’ve been around the business for a long while now.  As when in moments like our world is currently going through, I unfortunately am reminded so vividly of feeling this way before. The uncertainty, the doubt, that feeling of “I can’t believe this is actually happening”…and most impactfully, the fear.  I sense definite parallels to the period right after 9/11.  Our country and the world were dealing with real life and death issues, just like now.  We seemed to wake up to new fears every day, concerned about another attack, about anthrax and other weaponized drugs, about how New York would ever recover. Travel came to a halt, people were afraid to leave their homes, our government’s response was questioned, and it seemed like life as we knew it would never be the same. The stock market was down 7% the day after 9/11 and down by about 15% by the end of the week…after already being in a bear market after the dot-com bubble burst.

I see parallels to 2008 as well, when the financial crisis hit. It felt like every day I’d wake up and turn on CNBC to news of another company on the brink of collapsing, additional layoffs, the government trying to figure out how to stem the tide and another major selloff in the stock market that eventually cut market valuations by more than 50%.  In both cases, we were dealing with something we’d never seen before.  With things we never comprehended ever even happening.  It truly was surreal, just as things feel so surreal today.

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Market Commentary 2/29/2020

By: Matt Garrott

February came to a turbulent end with the S&P 500 down 3% or more during three trading sessions last week.  The S&P 500 was down 8.23% for the month and 8.27% for the year.  The 10-year Treasury yield is under 1.13% as a global flight to safety pushed yields down from 1.92% at the beginning of the year.

Fear-driven selling due to coronavirus is the lead story all over the media.  Both supply and demand were shocked as China aggressively quarantined its population.  Expect fewer reports on things returning to normal.  For example, after shuttering half of its 4,000 stores in China, Starbucks says 85% are now open.  Active coronavirus infections have been dropping by about 1,500 patients each day for the last two weeks.  Expect good news to be met with skepticism.

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Fear is Contagious

By: Matt Garrott

Stocks were off by about 3% yesterday on fears that cases of coronavirus are accelerating outside of China.  Should you worry?  For the “general American public“, the answer is no, according to the CDC.  Does that mean that only fools would be concerned by this?  No.  Identifying and dealing with threats is how humans have survived as a species.  It’s normal to watch the news, worry, then want to talk to someone about it.

 

Down 3%

Market pullbacks like this are not uncommon.  We had a 6% selloff in August of 2019 (tariffs) and a 6% drop at the end of January of this year (also coronavirus fears).  The last real correction was in the 4th quarter of 2018 when the market was down nearly 20%.  On average, there’s a correction of 14% each year so maybe we don’t even call this normal until we’re down another 10%?

The perceived importance of market drawdowns, however, is magnified because of how we collect and digest data.  We as humans are all relatively new to social media.  Whether it’s Twitter, Facebook, or Instagram, we have the opinions of a crowd at our fingertips.  Your feed may be telling you to panic over coronavirus, but other people’s feeds are full of spring training games, Saturday’s big fight, or Nevada caucus results.  If your feed is talking about just one thing, it’s easy to feel like EVERYONE thinks the same thing and that thing is very important.  Instead, it may be prudent to keep in mind Warren Buffett’s saying that pundits reveal “far more about themselves than they reveal about the future”. Continue Reading

Groundhog Wealth Management

By: Matt Garrott

Would you let a groundhog invest on your behalf?  That sounds silly, but at least Punxsutawney Phil has a track record.  When he saw his shadow, stocks rose 72% of the time.  Phil didn’t see his shadow this year.  Does that mean sell?  No.  Stocks rise 73% of the time whether the groundhog sees his shadow or not.

Punxsutawney Phil is very clear about his strategy, just buy stocks.  He doesn’t use language like “cautiously optimistic” to hedge his bets.  The varmint is all in.  Turning the investment desk over to a rodent doesn’t pass the smell test (in more than one way), however.

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