Waypoints

Market Perspectives - Third Quarter 2018

Are You Prepared? (Part I)

By the time the American and National Leagues sort out who will go to the World Series and college football teams wrestle to get to the National Championship game, we will be almost done with a different kind of season that is often fraught with uncertainty and havoc - hurricane season!

In sports, no matter how well prepared you are, the unexpected can happen (think Old Dominion and Virginia Tech!). Hurricanes, too, are unpredictable, and it is wise to take precautions while the sun is shining. Recently, our community was fortunate to have missed the wrath of Hurricane Florence. But not before schools and businesses were closed and thousands of people were instructed to evacuate. The inconvenience of the preparation was a small tradeoff for the reassurance that family and friends were protected no matter which way the storm turned.

Investing is much like preparing for a storm. (Click the PDF icon at right to read more...)

Did you know?

As we approach the holidays and the season of gift-giving, it is a great time to plan year-end gifts to charity and to make tax-free gifts to loved ones. If you are planning to make any gifts to charity between now and the end of the year, you may want to consider gifting appreciated securities rather than cash.

Waypoint Advisors is happy to help with these and any other year-end tax planning strategies that may be appropriate for you.

Market Perspectives - Second Quarter 2018

Walking the Tightrope - Don’t Look Down

Compared to the wild ride we experienced early in the first quarter, market volatility and high valuations settled into a more comfortable range during the second quarter. But, even though most economic indicators point to continued growth in the markets, investor emotions remain on edge, swinging between optimism and pessimism as forces that support global growth are offset by competing forces that deter growth. This balancing act causes many of us to worry, “How long will this bull market last and what could derail it?”

Click the PDF icon at right to read more...

Family Perspectives

At Waypoint, we try to view issues pertaining to wealth management through the eyes of the families we serve. Recently we conducted a survey that indicated many of our readers were interested in topics such as education strategies, taxes, estate planning and philanthropy. As a result, we are going to add a piece in our newsletter from time to time addressing these topics.

A Time of Transitions

“No graduate gets to this moment alone. I want to acknowledge your parents and grandparents and friends that are here cheering you along just as they have every step of the way.” - Tim Cooke, CEO of Apple, 2018 Commencement Speaker, Duke University

This spring it seemed as if everyone we knew had a graduation or two on the calendar. Children, grandchildren, nieces, nephews. College, high school, middle school, even kindergarten. Such excitement! Such optimism! Such buoyant confidence! A wonderful time of reflection and hope for the future (and no more tuition payments!).

Graduations remind us that life is full of transitions and that having good plans in place can help ease the anxiety of change and market uncertainty. With the slower summer months in front of us, this can be a good time to review, update, or implement family wealth strategies. 

Click the PDF icon at right to read more...

In the Spotlight: Waypoint Welcomes Kelly McCarthy

In the Spotlight: Waypoint Welcomes Kelly McCarthy

Kelly is a proud military brat and Virginia Beach local. She brings to Waypoint experience in both Family Office and Private Equity Fund Administration from Wall, Einhorn & Chernitzer, P.C. and Envest Holdings, LLC. She is on target to earn her Executive Certificate in Financial Planning from Old Dominion University this fall.

Market Perspectives - First Quarter 2018

Volatility is Back

In previous newsletters we talked about the eerie calm of the markets last year. In all of 2017, the S&P 500 index did not fluctuate more than 2% and it set 62 record highs over the year (the second most within a single year since 1990), ending up 21.8%. In contrast to the peaceful afternoon zephyrs of 2017, the first quarter of 2018 was a squall. Average daily volatility of the S&P 500 index jumped 355% in late January, with peak volatility in Q1 more than 1322% higher than the average from the prior 13 months.

In the Spotlight: Jane Short Chairs Women United Board

In the Spotlight: Jane Short Chairs Women United Board

Waypoint teammate Jane Short has been elected Chair of the Women United board for the United Way of South Hampton Roads. Founded in 2002, Women United has grown to a force of over 900 local women who through philanthropy and volunteerism are transforming the lives of women and children in South Hampton Roads. The South Hampton Roads chapter has raised more than $7 million to create the largest Women United Endowment Fund in the nation. To date, the group has invested more than $600,000 in community programs that address the issues of families in poverty.

Waypoint in the Community: Read Across America Day

Waypoint in the Community: Read Across America Day

On February 9, 2018, members of the Waypoint Advisors team participated in a national initiative called "Read Across America Day." Organized locally by the Virginia Beach GrowSmart Foundation, over 150 volunteers read in 237 classrooms and distributed 5,446 total books in every Virginia Beach Public Schools Pre-K, Head Start, Parks and Rec early childhood programs, and a variety of private childcare centers. The Waypoint team had the pleasure of reading the Dr. Seuss book, Oh the Thinks You Can Think!, to children at Parish Day School. "I cannot say THANK YOU enough!" wrote Miss Devin Cowhey, Virginia Beach GrowSmart Development Specialist. "We are so lucky to have you all as guest readers for this wonderful event. Without you, it wouldn't be possible." 

Did you know?

The recently passed Tax Cuts and Jobs Act has expanded the use of 529 plans. This tax-free way to accumulate money for college and other higher education programs now allows distributions up to $10,000 per year for K-12 education expenses at public, private or religious institutions. Waypoint can help you determine the best strategy for you and your unique situation. Virginia currently offers a tax deduction of up to $3,500 per account each year for contributions to 529 plans. If a deduction can’t be used in the year the contribution is made, it can be rolled over indefinitely to future years.

Virginia continues to receive high honors for its 529 plans.

Market Perspectives - Fourth Quarter 2017

As part of our year-end review of the markets, we decided to have a little fun and create a quiz touching on some of the interesting stories of 2017. See how you do! You will find the answers embedded in our Market Perspectives (see PDF at right) and in the Waypoints section of our website.

Quiz Answers - Fourth Quarter 2017

The answers to the quiz located in the Fourth Quarter 2017 Market Perspectives can be found in the PDF at right.

Market Perspectives - Third Quarter 2017

“Move fast, break things” – Mark Zuckerberg

FANGS, Unicorns and Silver Linings

At a recent Waypoint team meeting we had a lively discussion about industry “buzz words” – those catchy phrases or acronyms made popular by traditional and social media to describe current market trends and conditions. Some favorites: “FANG stocks” – coined in 2013 by CNBC’s Mad Money host Jim Cramer for four high performing technology stocks – Facebook, Amazon, Netflix and Google. And, more recently, high profile tech startups such as Snapchat and Uber with valuations over one billion dollars and negative cash flows, earn membership in the Unicorn Club, named for the mythical creatures that are so wonderful they can’t possibly be real. 

In the Spotlight: Congratulations Annie!

In the Spotlight: Congratulations Annie!

We are happy to announce that Annie LaChance, our Client Service Associate, married her longtime boyfriend, Dylan Huffman, on Friday, October 13th.

Annie and Dylan met nine years ago (just before Annie left town for Alabama to go to college) when they worked together at Mahi Mah’s, a popular oceanfront restaurant. Dylan is still in the hospitality business as a manager at TopGolf.

Dylan surprised Annie last November with a proposal in front of a group of good friends and family members. The wedding took place at the Oceanaire Resort in Virginia Beach. The happy couple will continue to live in their apartment on Shore Drive with their two cats, Molly and Gus.

We are all happy to officially welcome Dylan to our Waypoint family!

Waypoint in the Community: Women United

Waypoint in the Community: Women United

On October 11, Jane Short and Susanna Dellinger represented the Waypoint team at the 14th annual Women United luncheon of the United Way of South Hampton Roads.

Women United was established in 2004 by a handful of female community leaders to help transform the lives of women and children in South Hampton Roads. Over 700 women attended this year’s event pledging close to $1 million to help at-risk women find long-term economic security and self-sufficiency. The Women United Endowment Fund established in 2007 has grown to more than $6 million and is the largest such fund in the country.

Jane will be stepping us as the Chair of the Women United board at the end of the year and recently attended the annual Women United National Leadership Summit in Cincinnati. 

Did you know?

Did you know?

Every time you turn on the news, it seems that there has been another large scale data breach (Equifax, Yahoo, SEC, and the list goes on). Hackers and criminals have gotten very creative in their attempts to steal personally identifiable information and money. As consumers, we need to take every precaution we can to safeguard our information and protect ourselves from fraud. Some steps that you can take are choosing unique and complex passwords for each site that you access, choosing two-step verification for logging on to email and banking sites, never clicking on links or attachments in emails from unknown sources, and consistently monitoring your accounts for any unusual activity.

Click on the blue button to the right for more tips. 

The following list has been taken from the Department of Homeland Security's Protect Myself from Cyber Attacks website. 

The following preventative strategies are intended to help our public and private partners proactively look for emails attempting to deceive users into "clicking the link" or opening attachments to seemingly real websites:

  • Never click on links in emails. If you do think the email is legitimate, whether from a third party retailer or primary retailer, go to the site and log on directly. Whatever notification or service offering was referenced in the email, if valid, will be available via regular log on.
  • Never open the attachments. Typically, retailers will not send emails with attachments. If there is any doubt, contact the retailer directly and ask whether the email with the attachment was sent from them.
  • Do not give out personal information over the phone or in an email unless completely sure. Social engineering is a process of deceiving individuals into providing personal information to seemingly trusted agents who turn out to be malicious actors. If contacted over the phone by someone claiming to be a retailer or collection agency, do not give out your personal information. Ask them to provide you their name and a call-back number. Just because they may have some of your information does not mean they are legitimate!

Other practical tips to protect yourself from cyberattacks:

  • Set secure passwords and don't share them with anyone. Avoid using common words, phrases, or personal information and update regularly.
  • Keep your operating system, browser, anti-virus and other critical software up to date. Security updates and patches are available for free from major companies.
  • Verify the authenticity of requests from companies or individuals by contacting them directly. If you are asked to provide personal information via email, you can independently contact the company directly to verify this request.
  • Pay close attention to website URLs. Pay attention to the URLs of websites you visit. Malicious websites sometimes use a variation in common spelling or a different domain (for example, .com instead of .net) to deceive unsuspecting computer users.
  • For email, turn off the option to automatically download attachments.
  • Be suspicious of unknown links or requests sent through email or text message. Do not click on unknown links or answer strange questions sent to your mobile device, regardless of who the sender appears to be.

Market Perspectives - Second Quarter 2017

Double, double toil and trouble,
Fire burn and caldron bubble.
William Shakespeare, from Macbeth

Is the stock market bubble getting ready to burst… again?

At our monthly Waypoint Investment Committee meetings, in addition to taking a good hard look at our portfolios, we also talk about what we all are seeing and hearing in the real world. “Where is the next bubble?” we keep asking ourselves. 

In the Spotlight: Beth and Jane on Power List

In the Spotlight: Beth and Jane on Power List

Beth Patterson and Jane Short were recently honored by Inside Business magazine as members of the “2017 IB Power List.” Inside Business, the weekly business journal of The Virginian-Pilot, describes this list as “individuals that occupy our region’s positions of power and use their personal power effectively.” Both Jane and Beth believe that with power comes responsibility and a call for service – to lend a hand to others. We are proud that this is the foundation of Waypoint’s culture – using our skills and experience to serve our community as well as to help clients achieve their goals and reflect their values.

For additional details about this award and a complete list of honorees, please go to https://www.pilotonline.com/inside-business/special-reports/power-issue/the-next-ib-power-list/article_c9df225e-737e-5e8b-baed-99bbd7682c72.html

In the Community: "Yes, and..." by Susanna Dellinger

In the Community: "Yes, and..." by Susanna Dellinger

Along with other members of the Hampton Roads Gift Planning Council, I recently participated in improv training at the Push Comedy Theater in Norfolk. I currently serve on the board of the Hampton Roads Gift Planning Council, which usually brings in speakers every other month to discuss current topics and trends relevant to our local philanthropic community. This month, instead of hosting a regular workshop, our council met at Push Comedy Theater to get lessons from the improv experts. We played several improv games and learned valuable techniques like “Yes, and…” where we were encouraged to build upon what others were saying rather than succumb to our natural tendency to say “yes, but…” and qualify their statements. We all learned to be better listeners and communicators – and had a lot of laughs in the process! 

Learn more about Push Comedy Theater and the Hampton Roads Gift Planning Council

Did you know?

Did you know?

Did you know that summer is a great time to review your charitable giving for the year? Take the time to ensure that your annual giving is aligned with your values and avoid the year end rush. Additionally, take advantage of current high market valuations by making your gifts now.

For more tips on philanthropy, click on the blue button to the right to expand.

Philanthropy and the Fiscal Year

June 30 marks the halfway point of the calendar year. It also marks the end of the fiscal year for many non-profit organizations. (You may have witnessed a recent flurry of solicitations from your favorite charities scrambling to end their year with a balanced budget!).

From time-to-time it is a good idea to make sure our financial resources are in alignment with our values. The slower summer months are a good time for us to evaluate our own personal philanthropy strategy. Here are some tips!

Give to organizations that you love and that make our community stronger. There are many reasons that we may give to charities:

  • Mission – the work of the organization aligns with our own personal values.
  • Board or Volunteer Service – we have been involved and are committed to the organization’s success.
  • Relationships – we have a friend or family member who is involved with the organization or a member of the non-profit staff has fostered a bond with us.
  • Civic responsibility – we recognize that there are certain organizations whose existence enhance the economic vitality of our community and indirectly effect the quality of our lives (this is especially true of Arts organizations).
  • Tax advantages – we want to effectively leverage charitable gifts to help reduce our tax liability.
  • Family tradition – we honor organizations that have been supported by our families for generations.

Do your personal due diligence. There is much discussion these days about non-profit accountability and sustainability. If this is important to you, here are some resources that you can access to provide information with regard to philanthropy trends and financial status of individual organizations:

Consider making your annual gift sooner rather than later. Given that many charities have to start from scratch each July 1st, getting annual gifts in the door early helps them to better manage cash and start the fiscal year off strongly. Also, by making your gifts earlier, you can avoid the year-end crunch when things are hectic due to the holidays. Finally, considering that the stock market has been on a strong upward trend, this may be as good a time as any to make charitable gifts, especially if your means of giving is with appreciated securities. 

Review the tools of philanthropy. You should be having regular conversations with your professional advisers (wealth management advisor, estate attorney, accountant) with regard to the most effective and efficient way to accomplish your philanthropic goals. Some things to discuss and consider:

  • Using appreciated stock for your charitable gifts
  • Using your credit card (mileage points!) to make monthly “sustainer” gifts
  • Using your IRA Required Minimum Distribution for charitable gift giving
  • Taking advantage of NAP credits if available
  • Establishing and managing a donor advised fund or a private family foundation

At Waypoint, we value philanthropy and encourage and applaud generosity. If you have any questions about any of the items above or if you would like to confidentially discuss your personal philanthropic ideas, please contact our dedicated philanthropic specialist, Susanna Adams Dellinger, at 757-623-1600.

Market Perspectives - First Quarter 2017

The Active vs. Passive Choice - Some Perspectives

Confidence was high as reflected in both the consumer and purchasing manager surveys this past quarter and investors bet on continued growth in the US. Growth stocks outperformed value stocks 8.6% (Russell 3000 Growth TR) versus 3% (Russell 3000 Value TR). Investors did hedge their bet somewhat by favoring the generally less risky large cap stocks which returned 6% (Russell 1000 TR) over small cap stocks at 2.8% (Russell 2000 TR). In a further show of confidence, cyclical stocks outperformed defensive stocks 7.6% (MSCI Cyclical Sectors Index) versus 3.8% (MSCI Defensive Sectors Index).