NNP In The News: Are you investing for the life you want?

In the June 21 issue of the Upstate Business Journal, Carter Hall, wealth advisor at Nachman Norwood & Parrott, argues the common perception that Millennials are financially unprepared for the future, and offers advice for Millennials on how to reach their financial goals.

Carter recommends working with a wealth manager who can craft and execute a financial plan that is based around your goals. He also notes that while investment technology and tools are convenient, they fall short of the emotional connection that can be crucial to helping you during challenging times. Additionally, Carter acknowledges that wealth management professionals cannot only provide guidance during a volatile market, but they can act quickly in an effort to protect what you’ve built.

Read the full article on the Upstate Business Journal’s website. If you’d like to schedule an appointment with a financial advisor, call us at (864) 467-9800.

NNP in the News: Lauren Starks Joins Nachman Norwood & Parrott as a Senior Wealth Planner

The team at Nachman Norwood & Parrott Wealth Management Consultancy (NNP) is excited to welcome Lauren Starks as a Senior Wealth Planner.

Lauren is a CERTIFIED FINANCIAL PLANNER™ and in her role at NNP, she will oversee the financial planning department and work closely with advisors to help develop and prioritize each client’s goals.

Lauren comes to NNP with 12 years of experience in the wealth management industry and previously worked as a Senior Planner with Smith & Howard Wealth Management in Atlanta, Georgia. She holds a Bachelor of Arts in Sociology from the University of Georgia and earned a certificate in Personal Finance Planning at UGA’s Terry College of Business.

The news of Lauren joining the NNP team was shared on GSA Business Report’s GSABizWire.com, Greenville CEOUpstateBizSC and the June 8th issue of the Upstate Business Journal.

 

Some Additional Information For You: Another Update From Your Team

We are making progress with the transition of client accounts to Schwab and would like to provide a few updates:

1. Emails from Schwab:

Many of you may be receiving email notifications from Schwab regarding a variety of items such as electronic document delivery or confirming account information changes.

These emails are a part of the normal account opening process, but please contact us with any questions you may have.

2. Asset transfers:

Once your new accounts are open at Schwab, it will take five to seven business days to actually transfer your assets from Wells Fargo to Schwab. If you had online access at Wells Fargo, you will continue to have that access available until the day your accounts transfer. Once your accounts are in transfer, we will be able to assist with any questions.

3. Notices from Wells Fargo:

Many of you have received a letter mailed in error by Wells Fargo stating the advisor on your account has been changed. Please disregard this notice.

Thank you again for your support as we make this transition. Please let us know if you have any questions.

3 Things To Remember: An Update From Nachman Norwood & Parrott

At Nachman Norwood & Parrott Wealth Management Consultancy (NNP), we are completing the final steps to become a Registered Investment Advisor. We look forward to the benefits it will provide to our clients and our staff.

We are committed to making this process as easy as possible for you, our valued clients. To do so, we would like to share a few reminders effective May 1, 2018:

1. Email

When emailing our team, please be sure to use email addresses that end in @nnpwealth.com.

2 Deposits

Until mobile access is available, please either mail or bring any deposits to our office. Deposits should be made payable to Charles Schwab.

3. Online Access

New and improved online access is underway. We will provide specific online access instructions as soon as it is available, but in the meantime, please contact our office with any questions.

As always, our team is here to help you every step of the way. We are very grateful to each of you for our success thus far. We appreciate your continued support during this process.

Tax Season is Here and So are We

April 17 will be here soon. As you prepare your 2017 taxes, we would like to remind you of some possible tax-saving considerations:

Health Savings Accounts (HSA) Tax preparation

If you are covered under a High Deductible Health Plan for your medical insurance, you may be able to make a tax deductible contribution to an HSA. You have until April 17, 2018 to contribute to an HSA for 2017. The money remains in your account and may be used to pay for any qualified expenses in the future and/or invested*.

Contribution limits for 2017 are:

  • $3,400 for single
  • $6,750 for family
  • $1,000 additional catch-up contribution for age 55 and older

Individual Retirement Accounts (IRA)

If eligible, you can make a deductible contribution to an IRA by April 17, 2018. Contributions are limited to $5,500 if under age 50 and $6,500 if over age 50.

If you are self-employed, consider making contributions to the following:

  • SIMPLE IRA or Safe Harbor 401k – These plans need to be established by October 1 of the preceding year. Contributions must be made by either April 17, 2018, or by October 15, 2018 if there is an extension.
  • SEP IRA – The plan must be established by and the employer contributions made by April 17, 2018, or October 15, 2018 with an extension.

SC Future Scholar 529 Plan

2017 contributions to the SC Future Scholar 529 plan may be made until April 17, 2018 and may be used by state residents to lower SC taxable income. A state income tax deduction of up to 100% of contributions (including rollovers) to a Future Scholar 529 plan is available for South Carolina tax payers.

Your team at NNP is ready to help during tax season. We are happy to work with your tax advisor to determine the viability of any of these strategies. Give us a call at (864) 467-9800.

*minimums might be required.

NEWSLETTER: Q1 2018 – Contribution Limits

A new year brings a new opportunity to maximize savings. Consider increasing your contribution in 2018 to the limits listed below to help reach your savings goals. If you have any questions about how to ensure you are making the most of your contributions, your advisor at NNP is happy to help you understand more.

RETIREMENT PLAN LIMITS:

  • Traditional and Roth IRAs Contribution Limits $5,500
    • Age 50 and over Catch-up Contribution $1,000
  • SEP Contribution Limit
    • Up to 25% of compensation $55,000
  • Elective Deferral Limits
    • 401(k), 403(b), 457 and SARSEP $18,500
    • Age 50 and over Catch-up Contribution $6,000
    • SIMPLE elective deferral $12,500
    • Age 50 and over Catch-up Contribution $3,000
  • Defined Contribution Limit $55,000
  • Max Includable Compensation $275,000

EDUCATION:

  • 529 Plan per individual—before gift tax $15,000
  • 529 Plan per couple—before gift tax $30,000
  • Accelerate 5 years of gifting into 1 year per individual $75,000
  • Accelerate 5 years of gifting into 1 year per couple $150,000

HEALTH SAVINGS ACCOUNT:

  • Maximum Contribution
    • Single $3,450
    • Family $6,900
    • Age 55 and over Catch-up Contribution $1,000
  • Minimum Health Insurance Plan Deductible
    • Single $1,350
    • Family $2,750

To read the other articles from the first quarter of 2018, download the full newsletter.

Newsletter: Q1 2018 – A Year In Review

Contrary to most predictions, 2017 turned out to be a steady upward move for worldwide equity prices and most capital markets for that matter. As is quite often the case, all the noise did not have the impact many would have expected. Even though our year-end comments of 2016 leaned toward the positive side, we’re not sure we would have predicted as robust a year as it turned out to be. As we now enter the ninth year of a strong rebound in asset prices, the question of how much longer this can last remains front and center.

As for the past, 2017 was a positive for most major asset classes. The big story—and one we at NNP have been waiting for—was a rotation from the U.S. equity markets to overseas. In fact, both the emerging and developed overseas equity markets outperformed the U.S. Outperformance has not happened in quite some time, and we would guess this trend is likely to continue. On the other hand, traditional fixed-income markets remained muted—not surprising considering how low rates have been. In fact, looking back at the last five years, the bond market (as measured by the Bloomberg Aggregate Index) has lost much of its luster. So, now what?

The case for further gains.

Since 2009, we have repeated the mantra that low interest rates, low inflation and low taxes provide a solid foundation for equity prices. Even though much has changed since 2009, these key building blocks remain in place. In fact, we now have even lower taxes as we enter 2018. Finally, as we have also repeatedly mentioned, bull markets typically end in a speculative frenzy. Although some signs have begun to emerge (e.g., the activity surrounding Bitcoin), we are not convinced we are at true bubble stage.

The case for caution.

Based on historical averages, both equity and bond markets are at a minimum fully priced. We are in an eight-year bull market that has seen a cumulative 295% return for the S&P 500*, making this one of the largest and longest bull markets in history. The current economic expansion is already twice the length of the average expansion. Finally, it has been an above-average length of time since even the last market correction.

Some might argue that the stars are just aligning: the economy is gaining speed and lower corporate tax rates are soon to further ignite this. However, we would point to two old sayings: “buy on rumor and sell the news” and “buy stocks when the news is at its worst, not best.” The stock market is a forward-looking indicator. Has the past rise been in expectation of the current environment or have we just begun?

In summary, we continue to believe the potential reward at current levels is reduced while the risk has been increased. This time last year, we built a similar case, although we gave the edge to the positives. As we enter 2018, the pendulum has tilted to a more neutral stance. Returns can be produced, but the risks continue to rise.

Predicting markets accurately is a gamble. No matter what happens, we at NNP will be here to help navigate the waters. Happy New Year!

To read the other articles from the first quarter of 2018, download the full newsletter.

Newsletter: Q1 2018 – Associate News

Meet Anna Britton . . .

When entering our front door, you’ll likely be greeted by the newest face of Nachman Norwood & Parrott Wealth Management Consultancy (NNP). Anna Britton Madden recently joined NNP as our Administrative Assistant. She comes to us as a graduate of The University of South Carolina with a Bachelor of Arts degree in Mass Communications. Anna Britton will be responsible for the day-to-day operations of our front desk as well as scheduling client reviews.

. . . and Sarah Carter

Sarah Carter Farmer joined NNP in June 2017 as an intern and has recently accepted a full-time position where she will be helping us with wealth management planning for clients. She will assume her full-time planning duties upon graduation in May. Sarah Carter is a senior at Furman University, majoring in Accounting.

We are very excited to have these two join our NNP family.

To read the other articles from the first quarter of 2018, download the full newsletter.

Market Update from Nachman Norwood & Parrott

Never any fun but necessary!

We have obviously seen a short and quick decline in worldwide equity markets during the month of February.  If you have heard us over the past months, and for that matter years, we have been preaching caution as the markets have reached one new high after another.  When these events take place, everyone spends lots of time speculating and analyzing why.

In our view, the why is quite simple.  Markets do not go straight up.  As the old saying goes, it’s two steps forward and one step back.  We have been in a 9-year bull market that had risen approximately 295%*.  This run has been highlighted by an almost uninterrupted break over the past 15 months.  As we have communicated in the past and shown in charts, the market on average has a 14.5% decline every year!* Most of those years end positively.  It has been quite some time since we have had a pullback at all.

At this point, our “deep” analysis says the market is just letting a little of the speculative air out.  Even though we never like it, this is better than an uninterrupted bubble that ends in greater pain.

Give us a call if you would like to talk further.

*Source: JP Morgan

NNP IN THE NEWS: The State of Wealth Management After Tax Reform

In the January 5 issue of the Upstate Business Journal, Nachman Norwood & Parrott Wealth Management Consultancy’s (NNP) Vice President Wes Boyce discusses the recently signed tax bill in a bylined column. The bill, commonly referred to as the Tax Cuts and Jobs Act, is the most substantial change of the federal tax code in more than three decades. This change affects corporate America to high-net-worth individuals to the middle class and beyond, and Wes explores just a few of the bill’s implications.

One of the most notable changes that might affect high-net-worth individuals is that while the number of individual tax brackets remains at seven, the number of estate and trust brackets decreased from five to four, each with slightly lower rates.

Wes notes that the bottom line is to work quickly to understand what impact this bill will have on your taxes. A financial advisor can (and should) help support your tax advisor about steps you might want to consider moving forward.

Read the full article on the Upstate Business Journal’s website. If you’d like to schedule an appointment with a financial advisor, call us at (864) 467-9800.