1st Quarter Updates and Commentary from IEM
|
|
Dear Friends,
We hope you are experiencing the same optimism all of us at IEM are feeling regarding what 2021 has in store for the rest of the year! As a new season begins to take shape, we continue to wish you and your families continued joy, happiness, and health in the coming months. Our dedicated team of professionals would like to thank you for your commitment to how IEM has been able to serve you, and we appreciate your willingness to continue our partnership together into the future.
Below, you’ll find a variety of topics that may be of interest to you, including CFA Danny Schoenecker's Q1 2021 market commentary, information for tax filing, an Investor 360 update, copies of IEM employee features celebrating the month of March as National Women's History Month, some background on our recent hires in Melanie Kriegler and Tim Smith, Happenings at IEM, and an ICYMI for our first webinar of the year with a recording of the presentation to come in the next few weeks.
|
|
In the first quarter of 2021, the resilient equity markets continued their march higher, as investors’ optimism grew in light of continued fiscal and monetary stimulus, as well as an improved vaccine environment. The first quarter returns of major indices were approximately as follows:
S&P 500: +6%
Russell 2000 (Small cap US Stocks): +13%
MSCI ACWI Ex-US (International Stocks): +3.5%
Barclay’s Aggregate Bond: -3.5%
In hearing conversations that our advisors are having with clients, a common theme circles around the sustainability of the past twelve months’ market growth. In an attempt to provide perspective, below is a deeper dive into current economic and monetary policy that is impacting the markets.
As mentioned above and in past newsletters, policy officials responded to the 2020 economic contraction with unprecedented support, in many ways performing an admirable job. Looking ahead, however, it is my estimation that the key variable in determining the duration of the economic growth will be inflation.
The Federal Reserve has a dual mandate to pursue (1) maximum sustainable employment and (2) price stability. To date, the Fed has been able to release it’s full arsenal of tools towards mandate (1), without mandate (2) being jeopardized.
Nonetheless, inflation expectations have risen dramatically in the past year – the 5-year Breakeven Inflation Rate has climbed from 0.49% on March 31st, 2020, to 2.52% at the present. If inflation is moderate and transient, the Fed and fiscal policymakers will be able to keep their feet on the gas; if inflation rises too rapidly and is persistent, there may be a difficult choice between the two mandates.
In conclusion, by providing this deeper context, it is my intent to stimulate helpful conversations between clients and the advisor team at IEM, regarding investors’ asset allocation, risk tolerance, and meeting one’s financial planning goals.
I wish all a wonderful Spring and be well!
Daniel Schoenecker, CFA, MBA
Chief Financial Officer
Disclosure: Certain sections of this commentary contain forward-looking statements based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is not indicative of future results. Diversification does not assure a profit or protect against loss in declining markets. All indices are unmanaged and investors cannot invest directly into an index. The S&P 500 Index is a broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. The MSCI ACWX Index is a float-adjusted market capitalization index designed to track the investment results of an index composed of large and mid-capitalization non-U.S. equities. The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index . The Bloomberg Barclays Aggregate Bond Index is an unmanaged market value-weighted index representing securities that are SEC-registered, taxable, and dollar-denominated. It covers the U.S. investment-grade fixed-rate bond market, with index components for a combination of the Bloomberg Barclays government and corporate securities, mortgage-backed pass-through securities, and asset-backed securities.
|
|
Information for Tax Filing on April 15
***Reminder on Extension for May 17
On March 29, 2021, the IRS announced that individuals have until May 17 to make 2020 contributions to their individual retirement accounts and heath savings accounts (HSAs).
Deadlines were also extended to May 17 for Archer Medical Savings Accounts (Archer MSAs) and Coverdell education savings accounts (Coverdell ESAs).
In addition, the IRS noted that it has postponed until May 17 “the time for reporting and payment of the 10 percent additional tax on amounts includible in gross income from 2020 distributions from IRAs or workplace-based retirement plans.”
This announcement followed a March 17 declaration that the federal income tax filing deadline for the 2020 tax year has been extended from April 15 to May 17.
It is important to note that a federal tax filing extension does not necessarily equate to a state tax filing extension. As such, it is important that you confirm the tax filing deadline in your state, as well as any other state in which you are required to file a return.
In addition, this extension does not apply to estimated tax payments due on April 15.
If you didn't have a chance to read our previous correspondence regarding the American Rescue Plan Act, please click HERE to jog your memory on it's passage and how it may impact filing your taxes.
Please contact our Operations Team if you have any questions regarding your personal tax situation.
|
|
Investor 360 Update
As you may have noticed, we’ve recently experienced issues syncing outside accounts in Investor360°. This is happening because, as financial institutions increase security measures, it becomes more challenging to access their data.
Although account aggregation technology will never be seamless, Investor360° is upgrading its account aggregation platform in the next few months. Once completed, overall connections with financial institutions should improve. The upgrade won’t fix every issue with syncing data, but we believe it will reduce many of the recent syncing errors.
Please don't hesitate to reach out to members of IEM's Operations Team if you need assistance with any issues you may be having.
|
|
National Women's History Month Employee Features
For the month of March, IEM was honored to highlight some of the incredible women we have working in our office, and how their life experiences have impacted their work in the financial services industry. Take a look below for some of their employee features we posted to our social media accounts! We hope you gain some insight into their thoughts, and learn more about our awesome employees on a more personal level. Click on the title of the employee feature you wish to read below:
By Danica Goshert - Senior Vice President, Private Wealth Manager
By Suzi Chochrek, Registered Executive Assistant
By Melissa Costley, Director of Client Strategy, Associate Private Wealth Manager
By Gretchen Church, Client Services Officer Coordinator
By Muqing Yue, Senior Financial Planning Associate
|
|
Recent Hires - Melanie Kriegler and Tim Smith
|
|
Melanie Kriegler:
Since graduating from the University of Missouri in 2006, Melanie has found a special passion for helping others. From being a go-to resource for clients while guiding and mentoring colleagues, Melanie finds it truly rewarding to know she makes a difference in people's lives.
Prior to joining IEM in 2021 as Manager of Client Strategy, Melanie has extensive experience in the financial services industry in her previous roles as a Client Relationship Manager, and as a Private Client Administrative Assistant in the Twin Cities area. Her skills and expertise are vast with instituting project management and client onboarding processes while delivering exceptional results for clients.
Melanie earned her B.A. in Psychology from the University of Missouri. She holds her FINRA Series 6 and Series 63 registrations, as well as holding a Minnesota Life Insurance License and is a Minnesota Notary.
|
|
Tim Smith:
In need of expertise and guidance to build IEM’s Marketing and Communications Department, Tim joined our firm in 2021. Having a profound sense of duty and service, Tim has extensive experience in campaign, legislative, and communications work in both the private and public sectors. Being a jack of all trades, Tim finds pleasure in working with team members in a variety of departments offering sound advice, vision, and execution when it comes to marketing, media relations, and communications strategy.
Prior to joining IEM as our Manager of Marketing and Communications, Tim worked as staff on U.S. Senate and U.S. House of Representatives campaigns, as well as staff on the Taxes Committee at the Minnesota House of Representatives. Tim transitioned to the private sector in 2019 and 2020 to hone his talents and skills in the marketing, public relations, and communications sectors.
Tim earned his Bachelor of Arts in Political Science from the University of St. Thomas.
|
|
Happenings at IEM
After the crazy year we had in 2020, some IEM staff were able to take some time off to recharge their batteries before coming back and serving you to the highest standard. The culture we've built here at IEM places the utmost importance on family and friends, and we're so happy some of our employees were able to take advantage of living life outside of the office! Check out some of their photos from their time off below.
|
|
In late February, our Director of Client Strategy, Associate Private Wealth Manager Melissa Costley, and her husband, Steve, took their beautiful family on a well-deserved vacation to the Florida Keys! Although the Costley family had a wonderful time, all of us at IEM are so thrilled that Melissa is back in the office and providing you the quality service you deserve.
|
|
In mid to late March, our Manager of Marketing and Communications, Tim Smith, also spent some time in Florida for a vacation with family and friends! He was able to catch a Twins Spring Training game with his Dad, Ted, and had a wonderful time catching up on some of his favorite books in the Florida sun. He's eager to get back into action and take on his responsibilities for the rest of the year.
|
|
ICYMI: April 6th, 2021 Webinar
|
|
At the beginning of this month on Tuesday, April 6th, IEM was pleased to present our first webinar event of the year titled A Conversation on Charitable Giving and Celebrating Women's Philanthropy hosted by our Senior Vice President, Private Wealth Manager Danica Goshert alongside philanthropist consultant Jenny Norris Peterson!
The entire IEM team was thrilled with the amount of folks who signed up to take part in the important topic of charitable giving, women's philanthropy, and financial strategies everyone can implement for their charities of choice!
***Please be on the lookout for a link to the webinar recording in the next few weeks if you were unable to join us! THANK YOU!
|
|
Best wishes,
Ted Smith, Danica Goshert, Charles Stewart, Dan LaNasa, Melissa Costley and the entire IEM team
|
|
Integrated Equity Management
8009 34th Ave South
Suite 1550
Bloomington, MN 55425
Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Advisor. Fixed insurance products and services offered through CES Insurance Agency.
See what's happening on our social sites!
|
|
|
|
|
|
|