Markets Hit New Highs—Should You Change Your Plan?
|
Also In Your Newsletter: The Truth About Direct Indexing
Markets have a way of keeping investors on their toes. Just months after a rocky start to the year, U.S. stocks are once again closing in on all-time highs. In fact, this is the basis for one of the most common questions we’re hearing now: “With markets at all-time highs, should I change the way I’m investing?” Are all-time highs really a reason to change your financial plan? Of course not. Here’s an interesting fact: Historically, investors who invested at all-time highs between 1926 and 2022 have, on average, seen a higher one-year return (13.7%) than those who invested when the market was lower (12.4%). Over longer time periods, returns for those who invest at market highs tend to be right in line with average market performance. Source: Dimensional Fund Advisors "Why a Stock Peak Isn't a Cliff" More importantly, stock market highs should not be viewed as a ceiling but rather as a natural result of investment growth. Any investment with positive returns will regularly produce new all-time highs. New highs are a normal part of market history. There have been thousands over the years, and today’s milestone should be viewed no differently than when the Dow Jones Industrial Average first broke the 100 level (in 1906, in case you're curious), especially considering it’s around 44,000 today. If you have money to invest for the next couple of decades, stocks—even at all-time highs—can still be an excellent way to build wealth. We’re Here for You Whether markets are soaring or stumbling, our priority is helping you stay confident and on track toward your retirement goals. If anything in this newsletter sparks a question, or if you simply want to talk through your financial plan, simply reply to this email and we'll be in touch.
We truly value the trust you place in us and appreciate the opportunity to be part of your financial journey. Have a wonderful rest of the month, The Arnold & Mote Team Welcome Our Newest Team MemberWe would also like to introduce the newest member of our team here at Arnold and Mote— Kyle Bakas! Kyle joined Arnold & Mote to help families align their financial decisions with their values. As a father of three, he saw firsthand how clear, fact-based guidance can shape a household’s future and decided to choose a career in financial planning. He passed the CFP® exam in November 2024 and is now working toward full CFP® certification. When he isn’t with clients, you’ll find him on a bike, at a soccer field, or spending time with his kids. We look forward to many of you meeting Kyle this fall! August Webinar: What You Need to Know About Direct Indexing Direct indexing is one of the fastest-growing investment strategies on Wall Street. By the end of this year, nearly $1 trillion is expected to be invested through direct indexing. Instead of buying a single ETF or mutual fund, direct indexing involves purchasing each individual holding in an index. For example, rather than investing in an S&P 500 index fund, you would buy all 500 stocks directly. This approach allows investors to customize their portfolios more easily and potentially reduce taxes through strategies like tax-loss harvesting. And if you’ve heard the sales pitch, you might think direct indexing is your ticket to lower taxes and better investment management. But there’s more to the story. In our August webinar, we’ll break down the pros and cons of direct indexing—helping you decide whether it’s a strategy worth pursuing. In this webinar, we’ll cover:
Join us for the live broadcast at noon Central Time on Friday August 22nd, streamed on our YouTube channel here:
Want a reminder before we go live? Click the button above and subscribe to our channel to be notified as the webinar begins: If you can't attend live, a replay of the webinar will be accessible immediately after and available alongside recordings of all previous webinars on our YouTube channel. If there are questions you'd like to have answered, simply reply to this email and let us know! Last Month's Webinar RecordingIf you missed last month's webinar, here is the recording of "One Big Beautiful Bill - How The New Tax Law Impacts You" From the Arnold & Mote BlogArticle: Should You Convert Your Entire IRA to a Roth IRA? Roth conversions can be a powerful tax strategy, especially for those with most of their retirement savings in pre-tax or tax-deferred accounts. But as with so many financial decisions, moderation is key. Just because some Roth conversions are beneficial doesn’t mean converting your entire IRA or 401(k) at once will be the best choice. In this blog post and video, we explain several reasons why your financial plan might be stronger with a portion of your retirement savings left in pre-tax accounts.
Arnold & Mote Featured in the Press Newsweek: Will "Trump Accounts" Create a New Generation of Millionaires?As part of the One Big Beautiful Bill Act, “Trump accounts” are designed to give families a new way to save for their loved ones. While these accounts won’t be available until at least summer 2026, they could create valuable opportunities for parents and grandparents to help younger generations jump-start retirement savings and benefit from decades of compounding investment growth. We were interviewed for this Newsweek article to explain the basic features of these accounts and share some of the math behind why they could be advantageous.
See our other recent press mentions on our Press Page.
Looking for Something From a Prior Newsletter?As a reminder, you can now find the last 12 months of our newsletters here:
Whether you’re new and want to browse newsletters you missed or are trying to follow up on a topic from a few months ago, we’re now publishing all newsletters at the link above. We'll also keep this link at the bottom of all future newsletters.
Quinn and the Arnold & Mote Wealth Management Team (319) 393-4020 Contact Us | Blog | arnoldmotewealthmanagement.com Facebook | LinkedIn | YouTube You are receiving this newsletter because we've talked with you in the past about financial planning and wealth management. Privacy Policy The information herein was obtained from various sources. Arnold & Mote Wealth Management does not guarantee the accuracy or completeness of such information provided by third parties. The information given is as of the date indicated and believed to be reliable. Arnold & Mote Wealth Management assumes no obligation to update this information, or to advise on further developments relating to it. This is for informational purposes only. Investing may involve risk including loss of principal. Past performance is no guarantee of future results. |