The familiar cliché that hindsight is 20/20 seems particularly apt as we step into the year 2020 and look back on the decade of the 2010s. Throughout the past 10 years, we returned time and time again to principles and themes that we considered vital for success not just in this decade, but any decade. Revisiting the core principles and themes, while also highlighting the market’s lessons, will serve wealthy families well in the decade to come.
Resource Search
In 2020, we see a slightly better economic growth environment but modest capital market returns relative to the stellar gains of 2019. The global economy and markets will take two steps forward as stimulus measures lead to firming global growth, but policy uncertainty will cause markets to periodically take a step back. The U.S. election will come into focus, and markets will ebb and flow with the changing dynamics of the race. Equities should outperform fixed income. The push and pull interest rate environments is set to continue.
As technological advances are disrupting and transforming companies in every sector, the traditional investing landscape is also being disrupted. Venture capital is at the core of the transformation and has become a critical component of a long-term investment strategy. With the potential for attractive returns and significant impact to society, venture investing presents a prime platform for cross-generational conversations about investing and the critical role it can play in the family’s portfolio.
For many wealth creators, amassing wealth took a lot of work, but passing down the knowledge and tools to the next generation for successful wealth transition can be an even bigger challenge. Wealth creators may not know how to start or know the best approach. Through an infographic and video, learn the best ways to pass down the knowledge and tools to the next generation for a successful wealth transition.
The new year brings with it new tax-savings opportunities, including larger tax exemptions and exclusions, and new rules governing most retirement accounts. This advisory includes charts showing these figures for 2020 as well as this year's income tax brackets. A list of strategies and tips to consider in your tax planning this year follows each chart.
In seeking to evaluate the risk and return potential for a range of asset classes within the anticipated investment environment, there is caution given the deceleration in the economic cycle indicators that are monitored. A recession is not anticipated in 2020, but the conditions could change rapidly and investors should be prepared to make adjustments as necessary and appropriate.
What does it mean for a family funder to share and shift power? Here are ideas and questions to help guide an internal discussion on how your policies and practices affect the power dynamics of your philanthropy, and what you can do to alleviate this in your grantmaking, governance, and management practices.
One of the many challenges facing wealthy families in today’s fast-paced society is the need to meaningfully involve family members, including the rising generation, in the management of the family wealth enterprise. One way to engage the family is through philanthropic giving where families can derive great benefit from working together to define their core values and shared vision. If your family decides to take this approach, forming a private foundation may be the right answer for you.
In the tech industry, the calculus for risk versus innovation is starting to shift. Stakeholders don’t just expect new and exciting products and services, they want responsibility and governance. The good news is that the tech industry CFOs appear confident and ready to ride this new wave of social responsibility and market volatility.
Chief Investment Officer, Shannon Saccocia, sits down with Ryan McQuilkin, Head of Fixed Income, and Nancy Perez, Senior Manager to discuss: (1) the outlook for 2020 since 2019 was a banner year for a balanced portfolio; (2) how the impending U.S. presidential election might impact consumer optimism; and (3) which sectors they are watching.