Investing Archives - Darrow Wealth Management

Current events Forbes Investing

It’s Been One of the Top 5 Worst Starts to a Year for Stocks and Bonds

We all know 2022 hasn't been kind to investors so far. But according to BlackRock, it's been one of the worst two months to start a year on record. The S&P 500 had its fifth worst January - February in history and bonds wrapped the second worst ever start to…

Kristin McKennaMarch 21, 2022

Diversification Forbes Investing Investing During a Crisis Managing Risk

3 Biggest Mistakes Investors Make in Volatile Markets

Investing through market volatility can be challenging. Should you go to cash? What investments perform the best during a market selloff? Is it a good time to consider tax-loss harvesting or buying the dip? Often, the best time to evaluate or make changes to your portfolio is before volatility arrives,…

Kristin McKennaMarch 7, 2022

Bonds Diversification Interest rates Investing

Returns of Stocks and Bonds Before, During, and After Interest Rate Hikes (Charts)

The Federal Reserve is going to be raising interest rates (via the target Federal Funds rate). This is likely to happen next month. Rising interest rates affect the stock and bond market in different ways. Interest rates don't have a uniform impact on sectors within each broad asset class, either.…

Kristin McKennaFebruary 22, 2022

Diversification Forbes Investing Managing Risk Rebalancing

Here’s Why it Might be a Good Time to Rebalance Your Portfolio

Rebalancing your portfolio is an important part of managing your money. Rebalancing means buying and selling positions in your portfolio to get back to your original asset allocation. When one asset class significantly outperforms another, your portfolio drifts from its starting investment mix. This is important because unless you periodically rebalance,…

Kristin McKennaDecember 6, 2021

Diversification Forbes Investing

The S&P 500 Is Up 97% Since 2019. What’s The Market Outlook In 2022 And Beyond?

Since 2019, the total return on the S&P 500 is nearly 97% (almost 27% on an average annualized basis).¹ This outperformance is leaving many investors nervous, waiting for the other shoe to drop. Yes, current market conditions certainly imply lower returns for the stock market in the years ahead. But…

Kristin McKennaNovember 15, 2021

Asset Management Bonds Investing Retirement Planning

Living Off Dividends: Another Retirement Myth?

The idea of living off dividends in retirement sounds nice, but it's challenging. What investors don't always realize is how much money they'll need invested to generate enough income from dividends. For example, over the last 25 years, the S&P 500's average dividend yield was 2.01%.¹ If you have a…

Kristin McKennaOctober 18, 2021

Asset Management Forbes Investing Retirement Planning

Should You Change Your Asset Allocation in Retirement?

If you recently retired or are planning to, you likely have questions about how to position your investments going forward. Conventional wisdom suggests investors should change their asset allocation in retirement to be more conservative. However, depending on your pre-retirement asset allocation, income sources/needs, and long-term goals, that may not…

Kristin McKennaOctober 11, 2021

Diversification Forbes Investing Managing Risk

Is Bigger Better? Stocks Tend to Underperform After Joining Top 10

With the dominance of the largest U.S. stocks often occupying headlines, it's worth remembering that the biggest companies don't always produce the best returns. In fact, according to research from Dimensional Fund Advisors, historically, stocks tend to underperform after entering the top 10 largest stocks by market capitalization. On average,…

Kristin McKennaJune 14, 2021

Current events Investing Tax & Estate Planning Tax planning Updated for 2021

Will Tax Hikes Hurt Stocks? Impact of Tax Rates on the S&P 500

Between the Biden tax plans and other bills already before Congress, it's likely that some level of tax legislation will make its way into law before 2022. For investors, there's a concern that tax hikes will hurt stocks, a reasonable conclusion. But historically, tax rates have mostly moved independently from…

Kristin McKennaMay 11, 2021

Brokerage Account Building Wealth Diversification Forbes Investing Managing Risk

Trading vs. Investing: Which Is Better for Long-Term Goals?

Tesla, GameStop, Hertz, Dogecoin: retail traders continue to dominate headlines in the financial news media. Some individuals may be wondering, how is trading different from investing and which is better? For investors saving for long-term goals like retirement, placing speculative bets on single stocks rarely makes sense. But that doesn't…

Kristin McKennaMay 3, 2021

Investing