Long View Summer Reads
Signal vs. Noise: Great Companies Don’t Always Make for Great Investments. The Evidence Around IPOs.
Beyond the Number
A Book That Changed How I Think About Aging
What Happens When the Noise Gets Quiet
Author: Rick Hill
Lessons from a Lifetime of Investing
As the year comes to a close, it’s fitting that we take a moment to reflect on recent market lessons. But, you know we’ll never focus on any one year, so let’s consider the four most recent decades from 1975 through 2015. This captures nearly all of the investing lives of our clients. Here’s a summary of data taken at the beginning of each of the 10-year time periods.
TAKEAWAYS
• The S&P 500 increased more than twenty times while consumer prices rose four and a half times.
It’s hard to believe the amount of growth we’ve experienced, especially having lived through 9/11 and the great recession in ’07-’09. Our suggestion: Take this opportunity to remind yourself of these facts, stick to a long-term investment plan, and get on with whatever brings you joy in the year ahead. We’ve achieved a lot, and we may just be getting started.
Social Security Changes – They Taketh Away
On November 2, 2015, Congress passed new legislation governing social security benefits. We’ll be updating our recommendations as you near your social security start date, but here’s an overview of the changes:
- FILE AND SUSPEND GOES AWAY. This advanced technique—primarily utilized by professionals and their clients—allowed you to provide benefits to your spouse while you suspend and watch your own benefits continue to grow. This feature will be eliminated except for those individuals who have already filed and suspended or those who turn 66 before 5/1/16.
- RESTRICTED APPLICATIONS GO AWAY. Previously you could withdraw spousal benefits while delaying your own until age 70. Those under age 62 as of 12/31/15 will no longer be eligible for this benefit.
- NO CHANGE – At Full Retirement Age (66-67), the spouse with lower social security benefits will still be eligible for a minimum of 50% of their spouse’s benefits.
- NO CHANGE – If you delay collecting social security after your full retirement age, your benefits still increase by 8% per year until age 70.
Video: Evolution of Rick, The Investor
Despite Rick’s understated demeanor, he’s certainly one of the most important people on our team. Watch as he tells his origin story from his days at Anheuser-Busch.
