Author: CW O'Conner Wealth Advisors

Our 2021 Outlook includes a look at market financial conditions, highlights from our 10-Year Capital Market Assumptions, and four key themes investors should consider this year.

We’d like to share our capital market forecasts for this decade. We update asset class assumptions annually to reflect 10-year estimates for asset class returns, standard deviations, skewness, kurtosis and correlations.

November once again displayed the forward-looking nature of markets. Equity markets overlooked near record-high levels of unemployment claims and COVID-19 case counts and reached new highs on news that a vaccine may be imminent.

With tax reform potentially coming in the Biden administration, should taxpayers put off certain year-end planning opportunities? We outline planning opportunities tied to potential tax reform and general planning considerations.

To achieve President-Elect Joe Biden’s tax policy proposals, Democrats would likely need to control the Senate. The path to gaining control of the Senate appears challenging, so where does this ultimately leave taxpayers?

Many people look forward to retirement, a period in their life when they will have more time to spend with family or do activities they enjoy. It’s always prudent to begin planning for retirement many years before your actual retirement date so that you will have time to achieve your financial retirement goals.

October was full of tricks, not treats. A failure from policy makers to pass further fiscal stimulus and increasing COVID cases weighed on equity markets.

Elevated volatility weighed on U.S. Large Cap Equities in October, and U.S. dollar strength curbed inflation expectations and detracted from TIPS. For more asset class performance in October, view our latest Market Recap.

Harnessing the knowledge of greater market volatility in an election year is not only helpful to avoid classic behavioral mistakes that can lead to worse portfolio outcomes, but it also reinforces the notion that investors are more likely to be successful if they maintain a long-term point of view.

Estate and gifting limits are at favorable levels right now, giving high net worth individuals ample estate planning opportunities. However, because of the uncertainty around potential tax reform that could be enacted as early as 2021, we encourage individuals to investigate acting on these current opportunities before the end of 2020. What is the current…
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