Negative Interest Rates: Uncharted Waters

You may have heard about how European and Japanese central banks have been adopting increasingly unconventional monetary policies, most notably lowering their short-term interest rate to below 0%. Yes, although hard to believe, many countries around the world now have negative interest rates, with banks effectively charging customers for holding their money. After multiple rounds…
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Why 2015 is still relevant in 2016

During our annual account reviews at The Legacy Foundation, we review and discuss key events that shaped the investment environment in the previous year and how these events factored into our decisions regarding portfolio allocations. While no financial adviser has a crystal ball, we do use macro research and technical analysis in our investment process…
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What’s New For 2016

My last financial planning article that spoke to a retirement income strategy that could be implemented through Social Security – file and suspend – has been modified or rescinded for many. The idea was to be able to tap into your spouse’s benefits before taking your own benefit in order to have your postponed payments…
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Market Outlook

If asked on New Year’s Day 2015, what factors would be determining the direction and volatility of the U.S. markets by the middle of the year, I would have guessed speculation about the U.S. Federal Reserve’s monetary policy. However, foreign matters, specifically activity in the equity markets of Greece and China, seem to be more…
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Get ready for a 4,000-point Dow drop (???)

  Many clients have seen an article published online[1] which suggests the Dow Jones Index, a common measure for the performance of the U.S. stock market, could drop 4,000 points. Indeed, the first half of 2015 has certainly seen a lot of market volatility and minimal upside. As of market close on June 15, the…
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Begin the Long-Term Care Discussion

There are three guarantees in life…..death, taxes….and caring for the elderly. The ‘long-term care insurance’ discussion is being avoided by many individuals who, in fact, would be prime candidates to secure this insurance sooner than they think they should. With 60 being the new 50, people are working longer and many middle-aged people are taking…
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Do You Know About Virginia Conservation Tax Credits?

  What are Virginia Conservation Tax Credits? The state of Virginia provides a tax incentive for the owners of undeveloped land to keep that land in its undeveloped state. If the owner of land that meets Virginia’s public conservation criteria decides to retire that land from development in perpetuity, the owner is eligible to receive…
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What’s In Your Target Date Fund?

“Would the Target Date funds offered by my employer be a sufficient alternative to active asset allocation?” This is a question many investment professionals address regularly and there is no easy answer. However, contained herein is an attempt to describe Target Date funds and contrast them to active asset management. Asset allocation models are rubrics…
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Portfolio Construction at The Legacy Foundation

Our construction process begins with collecting pertinent client information, including a capital needs analysis and risk tolerance profile. Once a client’s information has been obtained, an initial portfolio can be created and rebalanced periodically.Each portfolio is constructed on an individualized basis, but many portfolios have a common format. The majority of assets are invested in…
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Bond Market Activity in 2013

A common adage in finance is that rising interest rates will cause the price of bonds to decline. This is not the case for all bonds, but the statement does have some truth. Let’s consider an investment in U.S. Treasury ‘separate trading of registered interest and principle securities’, a.k.a. Treasury STRIPS. Treasury STRIPS are fixed-income…
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