Insights

While war escalates in the Middle East, a political battle is also heating up in Washington. As of this writing, there is still no House speaker in Congress after Kevin McCarthy’s exit and Steve Scalise’s withdrawal. While a number of Republican and House votes are scheduled to attempt to resolve this leadership vacuum, there are more political hurdles on the horizon. This only complicates the market and economic environment for investors who are already navigating higher interest rates, Fed uncertainty, stock market volatility, and more.

Trusts are powerful legal tools that enable individuals to manage and distribute their assets according to their wishes, even beyond their lifetime. Selecting a successor trustee — the individual or entity responsible for administering the trust in the event of your death or incapacitation— is a pivotal decision in the trust creation process. The successor trustee is responsible for managing and eventually distributing the trust’s assets to beneficiaries.

Picture this scenario: You have finished a grueling interview process. After days of studying and fielding questions in front of the mirror, you finally get the offer. The job is a perfect fit for you, the salary looks great, and you even get some nice benefits! On your first day, your HR representative asks if you want to take advantage of the company’s 401(k) plan.

Interest rates have swung wildly over the past two years in response to inflation, economic concerns, and market volatility. After falling as low as 3.3% earlier this year, the 10-year U.S. Treasury is now yielding around 4.2%, back to where it was roughly a year ago. However, while today’s long-term yields look similar to last year’s on paper, they are quite different from an economic and market perspective. What are interest rates telling us today and how does this impact long-term investors?

Yes, investment returns matter. But your basic assumptions about and behavior toward money will probably impact your finances – and your eventual wealth – more than you currently imagine.

For long-term investors, knowing the difference between what can and cannot be controlled is the key to both financial success and peace of mind. While all investors would like to believe they can predict the direction of the market, experience teaches us that this is difficult to do.