Broker Check

RWM 2021 1st Quarter Commentary & Update

January 14, 2021
  • Asset Management
    • 2020 was a dramatic year of recovery from the depths of the COVID-19 declines in March.
    • Political drama is somewhat behind us but the market may express some volatility around new administration policies, increasing deficits, possibility of increased regulations and tensions with China, Russia and Iran.
    • Given the low level of interest rates, it should still be worthwhile to underweight fixed income relative to stocks for longer term investment capital.
    • In stocks, we will have maintained our overweight to international as well as value over growth, both due to current levels market valuations.
  • Financial Planning
    • Given the lower level of expected investment returns, we still advise accumulators to increase their level of saving and distributors to decrease their distribution rate to increase the likelihood of financial success over the next financial cycle. See our article Why 3% is the new 4% at the following link on our website.
    • Since income taxes continue to be the largest expense for many clients and tax rates may go up in the near future, we have published a new article last year which are still relevant.
      • Your Tax return…the key to after-tax wealth
      • What’s new at Renaissance Wealth Management BN, LLC.?
        • We remain back in the office and continue to enjoy the opportunity to host some of our children and grandchildren as they go through distant learning opportunities from our office.
        • We continue to work on updating our data base and workflow procedures to enhance our ability to give you outstanding service.
      • Our people
        • Jeff Secord and Carol are still binge-watching many good TV series including “Line of Duty”, “Your Honor” and the final season of “Shameless” among others. Jeff just finished First Principles and is starting on Breaking the Habit of Being Yourself (…he has been told he needs it!). Carol is getting caught up on needlepoint projects.
        • Scott Davis, Molly, and their three kids thoroughly enjoyed spending Christmas together with Scott’s mother. Our oldest child, Annabelle, turned 6 and has been looking forward to in person school which resumed this past week. Our middle child, Violet, turns 4 in March and youngest child, Luke, will be 2 in June. Where does the time go!
        • Hilary Secord and family celebrated two birthdays (Haylie turned 5 and Peyton 11) as well as Christmas and Hanukkah recently. We have enjoyed spending time together and with close family during this time.
        • Julia Mueller, has extended a second semester as our intern. Julia is a human resources major with a minor in finance. Julia has been thoroughly enjoying learning about financial planning and helping clients navigate complex financial and investment decisions. She expects to graduate in May and pursue a career in financial planning.
      • Sources
        • Guide to the Markets. JP Morgan. January 4, 2021


The views stated in this commentary are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein.  Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed.  Past performance does not guarantee future results. Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing. All investing involves risk, including the possible loss of principal.  There is no assurance that any investment strategy will be successful.  Additional risks are associated with international investing, such as currency fluctuations, political and economic stability, and differences in accounting standards.  Disclosures for and written by Jeff Secord and Scott Davis.