Lessons from Market Timing

“Timing markets is the dream of everybody. Suppose I could verify that I’m a .700 hitter in calling market turns. That’s pretty good; you’d hire me right away. But to be a good market timer, you’ve got to do it twice. What if the chances of me getting it right were independent each time? They’re not. But if they were, that’s 0.7 times 0.7. That’s less than 50-50. So, market timing is horribly difficult to do.” – Professor Robert Merton, a Nobel laureate

Instead of timing the market, focus on what you can control – diversification, asset allocation, rebalancing, and tax-efficient investments. Dimensional Fund Advisors’ third quarter market report provides a lesson on discipline and long-term perspectives.

Preparing Your Business (and Yourself) for a Smooth Exit – Part 2

Key Takeaways Never assume the value of your business will provide enough for all your retirement goals. “Lifestyle creep” can eat up your discretionary income and derail your long-term financial and retirement goals. Ongoing planning, realistic budgeting, and sensible savings will allow you to live a comfortable lifestyle while you’re saving for retirement.   My … Continued

Target Date Funds: Good for Employees, Not so Great for Business Owners

Key Takeaways Target Date Funds (TDFs) are designed to adjust your risk exposure automatically as you get closer to retirement age. TDFs are not entirely “set it and forget it.” You still need to periodically check your accounts. One key drawback for business owners: TDFs do not track the multiple assets you may have outside … Continued

Preparing for Football Season and Your Finances

Football season is back! Whether you are a Husky or a Cougar, a Seahawk or a 49er, your team and its fan base are brimming with optimism this season. What you may not realize is that the outcome of this season is a result of the decisions and actions from weeks, months, and years past. … Continued

Is Public Service Loan Forgiveness Worth Pursuing for Medical Professionals?

We have helped many physicians, dentists, and medical professionals analyze the financial decisions that life throws their way. From student loans, home purchases, buying into a practice, maximizing retirement savings, education funding, and retirement income needs, Soundmark Wealth can help with these decisions, allowing you to focus on the things that matter most in life. … Continued

It’s Time to Pay for College

As students head back to college, higher education is always a topic of conversation this time of year. Specifically, the topic centers around the cost of higher education and how to finance tuition, room and board, books, and the other essential costs. We’ve published much about this subject and wanted to remind you about a … Continued

Three Ways the SECURE Act May Affect You

New legislation is in the works that may have an impact on your financial plan. The SECURE Act – Setting Every Community Up for Retirement Enhancement Act, has passed the House and is currently in the hands of the Senate. While there are several components of this proposal, there are three that I feel will … Continued

Improve the Odds

Staying the course is easy when returns are above average. The real challenge lies in staying the course when the market takes a turn. The Second Quarter Market Report shares historical data showing the frequency of positive returns over rolling periods of one, five, and 10 years. The data reveals that, while positive performance is … Continued

Community Connections

  Last week, Soundmark Advisor John D’Amelio had a great time playing in the Glendale Country Club Member Guest Tournament with one of our clients. John and Soundmark Wealth were honored to be a part of the event.

Preparing Your Business (and Yourself) for a Smooth Exit

Key Takeaways Planning your business exit should start several years in advance. Make sure you have your financials, processes, structure, and advisors in place to optimize your valuation. Think long and hard about how you will spend your time post-exit. Life without your business can be an extremely tough adjustment. If you’re like many business … Continued