Financial Planning and Rebalancing Guidance

We are living in highly emotional times. But how can investors make sure those emotions don't get in the way of good investing decisions? In this episode of WashingtonWise, host Mike Townsend welcomes Stephanie Shadel, senior wealth advisor at Charles Schwab, for a timely discussion on managing emotions during turbulent markets and the impact of Washington policy decisions on investing. Steph shares practical strategies for keeping emotions in check, building a financial plan, and considerations in making smart year-end decisions—including rebalancing portfolios, reviewing liquidity needs, and navigating the new tax law. She discusses how the tax planning, charitable giving, and estate strategies are evolving in light of recent legislative changes, providing actionable suggestions on the key questions for investors to discuss with their financial advisor before the end of the year. Mike also shares updates on the ongoing government shutdown, including how the Federal Reserve is navigating the lack of government economic data in advance of the upcoming monetary policy meeting.

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IMPORTANT DISCLOSURES

The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned  suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund.

All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

​Past performance is no guarantee of future results.

Investing involves risk, including loss of principal.

Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.

All names and market data shown are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks, including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors. 

Lower rated securities are subject to greater credit risk, default risk, and liquidity risk. 

Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.

Rebalancing does not protect against losses or guarantee that an investor’s goal will be met. Rebalancing may cause investors to incur transaction costs and, when a non-retirement account is rebalanced, taxable events may be created that may affect your tax liability.

Neither the tax-loss harvesting strategy, nor any discussion herein, is intended as tax advice and Charles Schwab & Co., Inc. does not represent that any particular tax consequences will be obtained. Tax-loss harvesting involves certain risks including unintended tax implications. Investors should consult with their tax advisors and refer to the Internal Revenue Service (IRS) website at www.irs.gov about the consequences of tax-loss harvesting.

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A donor's ability to claim itemized deductions is subject to a variety of limitations depending on the donor's specific tax situation. Consult a tax advisor for more information.

Investors should consider, before investing, whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available in such state's qualified tuition program.

Schwab does not recommend the use of technical analysis as a sole means of investment research.

This information is not a specific recommendation, individualized tax, legal, or investment advice. Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager, Estate Attorney) to help answer questions about specific situations or needs prior to taking any action based upon this information.

International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate this risk.

Commodity-related products carry a high level of risk and are not suitable for all investors. Commodity-related products may be extremely volatile, may be illiquid, and can be significantly affected by underlying commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions.

Digital currencies [such as bitcoin] are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal-tender currencies and regulated securities have. Due to the high level of risk, investors should view digital currencies as a purely speculative instrument.

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Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly.

Futures and futures options trading involves substantial risk and is not suitable for all investors. Please read the Risk Disclosure Statement for Futures and Options] prior to trading futures products.

S&P 500® Index- Measures the performance of 500 leading publicly traded U.S. companies from a broad range of industries. It is a float-adjusted market-capitalization weighted index.

Chicago Board Options Exchange (CBOE) Volatility Index ® (VIX®)- Provides a general indication on the expected level of implied volatility in the U.S. market over the next 30 days. It is derived from real-time, mid-quote prices of S&P 500 Index call and put options.

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