Now is the time of year when we get a chance to step back and reflect on the ways we are grateful. Gratitude lifts, heals, comforts and puts things in perspective. In the spirit of Thanksgiving, here are two simple reasons to be thankful in 2018.
Thankful for new yields
If you read our article from last week on cash, you know that we are excited about the new yields available via TBills. For the first time in over a decade, the 3 month TBill yields over 2%. (2.37% as of today). With 0% interest rates for the last 10 years, there has been a lot of pressure on investors to avoid holding cash. With many investors holding cash on the sidelines, unsure of where it should be invested, this presents an attractive, protected and fully liquid opportunity. If you want to know how this might be useful to you and how you can compare it to inflation, please ask
Thankful for the ability to help others
Robbert Emmons, PhD, professor of psychology at UC Davis has written three books on the psychology of gratitude and is considered one of the world’s foremost experts on the topic. His research demonstrates that gratitude improves sleep (via journaling on gratitude before bed), improves resilience in the face of new stresses, and improves happiness (as measured by forward looking optimism) by a significant margin. Robert says that gratitude, with its many benefits, is a choice and requires an active and consistent effort. You can read more in his most recent book, The Little Book of Gratitude.
One way we suggest exercising your gratitude muscles is by donating your appreciated securities. If you plan to give any gifts over $5,000, consider donating taxable assets with large capital gains. If you need inspiration on new charities you can see the organizations our clients support on our Philanthropy Page. When we donate a stock with a capital gain we make sure that:
1. The charity is allowed to keep the full asset value pre-tax.
2. We can write off that full value against our annual income.
3. We both avoid the capital gain
AMZN might be a new favorite this year given its short and long-term success. The best option isn’t always just the one with the largest capital gain. Make sure that you’re taking your whole allocation into account. There are certain limits and the details matter. We’re here to get the details right.
Happy Thanksgiving from Max, John and the Osbon Capital Management Team!
This communication may include forward-looking statements. All statements other than statements of historical fact are forward-looking statements (including words such as “believe,” “estimate,” “anticipate,” “may,” “will,” “should,” and “expect”). Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Various factors could cause actual results or performance to differ materially from those discussed in such forward-looking statements.”
“Historical performance is not indicative of future results. The investment return will fluctuate with market conditions.
Past performance is not indicative of any specific investment or future results. Views regarding the economy, securities markets or other specialized areas, like all predictors of future events, cannot be guaranteed to be accurate and may result in economic loss to the investor.
Investment strategies, philosophies, allocations and holdings are subject to change without prior notice.
This communication is intended to provide general information only and should not be construed as an offer of specifically tailored individualized advice.
While the Adviser believes the outside data sources cited to be credible, it has not independently verified the correctness of any of their inputs or calculations and, therefore, does not warranty the accuracy of any third-party sources or information.
Adviser does not endorse the statements, services or performance of any third-party vendor.
Unless stated otherwise, any mention of specific securities or investments is for hypothetical and illustrative purposes only. Adviser’s clients may or may not hold the securities discussed in their portfolios. Adviser makes no representations that any of the securities discussed have been or will be profitable.
Any IPO alerts are purely informational and should not be construed as recommendations to invest.
Any case studies or hypothetical client profiles are for demonstration purposes only. They illustrate the breadth and depth of the many clients we represent at various life stages. Any similarities to actual Adviser’s clients past or present are strictly coincidental. Individual advice and results will vary based on each client’s circumstances, objectives and prevailing economic conditions.