Cannell & Spears

Recently, one of our team members at Cannell & Spears became a first-time #grandparent, an incredibly special experience. Today, after decades of #stockmarket and #homevalue appreciation, grandparents are often able to give more than just the gold in their hearts – they can be a big #financial help as well. We often get questions from new grandparents about the best way to help. While everyone’s circumstances are different, we put together a primer on some ⁠ideas⁠ that we expand on in this episode. Available on spotify and apple podcast. Featuring our very own Michele Cleary and Robert Raich

In our fourth summer of partnering with our Prep for Prep summer interns we tackled challenges for Anita Job, Al Dente & Sue Flay and Bill Board & Lucy Board. While the clients may have been fictional, the work was most definitely not. Our interns, who have yet to take on any real #economics/finance courses, found themselves entrenched in the world of #financialplanning. Under the guidance of Alina Miska Carlson, CFP®, a CERTIFIED FINANCIAL PLANNER® at Cannell & Spears, the interns utilized professional tools to #model various portfolio outcomes based on different scenarios. Their fresh perspectives reminded us of the importance of mastering the basics. Here are their key #takeaways: - Understand the time value of money. It does matter what you do with that first #paycheck, because the earlier you start saving and investing the more flexibility you have in the future. If Anita Job had done this, she wouldn’t have to think about moving cities to afford #rent. -It's crucial to have a #purpose for your money. Allocating funds into different buckets—such as daily expenses, savings, and investments—helps in understanding your overall #financialhealth. -In one of our scenarios, Bill Board got distracted driving while looking at one of his billboards, and drove into Bergdorf’s on 5th. He had to pay a massive settlement for ruining luxury merchandise. While this is extreme, having #sufficientsavings does help against potential financial setbacks. -Identifying #goals and #diversifying a portfolio according to risk/reward ratios is key. It's not just about "making a lot of money," but about making it work for you, while also understanding your #risktolerance. It’s what let Al Dente and Sue Flay retire at 50 after selling their business. -Financial literacy at a young age, such as opening a #highyield savings account or learning about a #401k, can significantly impact your future. We’re grateful for this opportunity and look forward to extending our knowledge to our community. We’re excited to continue working with our talented #interns this summer. They just might end up teaching us a thing or two!

Grandparents: Gold In Your Hearts & Maybe In Your Pockets... Recently, one of our team members at Cannell & Spears became a first-time #grandparent, an incredibly special experience. Today, after decades of stock market and home value appreciation, grandparents are often able to give more than just the gold in their hearts – they can be a big #financial help as well. We often get questions from new grandparents about the best way to help. While everyone’s circumstances are different, these are some ideas: - Start a #529Plan - These plans allow a #sponsor (a parent, a grandparent, or really anyone) to contribute to an account that can be used for qualified education expenses. - Direct #tuition payments can be made on behalf of a student. - A gift of a required #downpayment can be made. Any gift would be limited to the annual exclusion amount, however a couple giving to another couple would be a total of $72,000 which may go a long way towards a down payment. - Most states have adopted the Uniform Transfer to Minors Act (#UTMA) which allows for custodial accounts for minors, without the necessity of establishing a trust. We've attached our full write-up below. https://lnkd.in/dwgFztkV

10 Financial Decisions to Make the Most of Your 20s on today's episode of Beyond Dollars by Cannell & Spears. Personal finance in your 20s can lay the ground for your financial success and stability, but it can be a little overwhelming to navigate at the outset.  What do you do with that first paycheck? Should you contribute to your 401k? When should you start investing? In what stocks? The questions to consider and actions to take are plenty, so we sat down with Cannell & Spears principal Jennifer B Lynn to discuss further. The most important rule? Get started.

On the surface, the stock market “looks” to be continuing the bull run that started after last summer. However, the rising tide has not lifted all boats. We believe that what we “see” is a market that requires a measure of prudence and caution. 

Clients sometime ask why we don’t own a particular stock; usually the #stock in question is a highflyer that has been in the news and just made an enormous move in #price. Or they might ask if we are considering the purchase of a #fallenangel, a revered company that the market believes has lost its way. To answer, it is important to note that a “good company” does not always make for a “good stock” just as a “bad stock” does not always make for a “bad company”. Today we go in-depth with our very own: ⁠Bob Morgenthau⁠ & ⁠Jeb Breece⁠ to discuss the ongoing ⁠Price vs. #Value⁠ debate. At the center of it all? #Discipline versus #greed. Listen now on Spotify: https://lnkd.in/gJUs7DRH

Looking forward to hearing our 2023 summer intern at the Lilac Ball! Congratulations Leonardo!

Personal finance in your 20s can lay the ground for your financial success and stability, but it can be a little overwhelming to navigate at the outset.  What do you do with that first paycheck? Should you contribute to your 401k? When should you start investing? In what stocks? The questions to consider and actions to take are plenty, so we’ve put together a guide to help you begin your financial journey. The most important rule? Get started. Full version available on www.cannellspears.com 1. The Power of 72 Young people able to invest in the stock market have the advantage of time. Time allows one’s investments (and all appreciable assets) to compound.  2. Avoid Credit Card Debt Before you invest, however, it is important that you can live within your means. If you carry a balance on your credit card month after month, I suggest your priority is to pay it off before you invest in the stock market. 3. A Rainy Day Fund Your next priority should be to have a rainy-day fund of about six months of expenses. 4. Don’t Leave Money on the Table Invest in a 401(k) or similar plan offered by your employer. Many employers match some part of what you contribute so you are saving and investing even more than your initial contribution. 5. Invest in a brokerage account If and when you can save beyond the amount the amount permitted to be contributed to a 401(k) or similar plan, you can (and should) open a brokerage account. Again, do this even if you need to start with a small amount and add to it as you are able. 6. Keep it Simple What to buy – Now that you have an investment account, what should you own? Your 401(k) plan will offer several to many choices of mutual funds and index funds. A brokerage account will extend to individual stocks and more specialized funds. There is no need to over diversify.  7. Stay the Course You are young and will live through many bull and bear markets. 8. Slow and Steady Wins the Race Portfolio construction – Remember the tortoise and the hare -  slow and steady wins the race. By and large, that is true of investing. You can make a lot of money hitting singles and doubles. 9. Learn the Lingo Monthly statements – Learn to read your monthly or quarterly statements. 10. Work With a Professional Once your investment account is over $250,000, you should consider hiring a registered investment advisor, like Cannell & Spears. Professional investment advisors have a fiduciary duty to put your financial interests first, understand and implement tax management, are in a better position to buy and follow individual stocks, and take the emotion out of investing. I hope you have found this helpful. The key thing is …get started! 

Office water cooler talk, yes it still exists, are abuzz with playoff hopes and dreams. Here in New York, we saw the #Knicks take a two-game lead to start the second round of the playoffs. The hard-fought series went to game seven. By then, the team looked more like an outpatient healthcare facility, they eventually folded to the much healthier Indiana #Pacers.     In hockey, the #Rangers took a 3-0 lead in a best of seven series, only to drop the next two games. While nervousness set in among the fan base The Broadway Blueshirts were able to win the series. They’ll start the next round of the playoffs tonight (Wednesday).    It’s also that time of year when #Jets fans declare themselves Super Bowl Champions before the season starts.     As fans digest results and set their short- and long-term views on their teams it reminded me of the role expectations play in #investing. As the first quarter earnings season comes to an end, we’ve seen most companies report decent earnings, but those that have given weaker than expected forward guidance have seen their stock prices punished. Similarly on the rate side, we’ve seen big interest rate moves based on the expected path of the Federal Reserve’s overnight lending rate.    After a #Fed conference in December of 2023 the committee got a little ahead of themselves downplaying the possibility of an increase in interest rates, stating definitively their next change would be a lowering of overnight rates. The market quickly priced in six interest rate cuts for 2024.     Since, the Fed has talked that down, tempering expectations to maybe two-cuts later this year. With expectations reset, we’ve seen a calming of both interest rate and stock volatility. Investors seem to have more realistic expectations of the future. #Markets have found comfort that policy rates are in sufficiently restrictive territory.     The first step was getting #inflation down from 9% to around 3% while keeping demand up, (#GDP grew $2.74Trillion over the same period). Now with most companies no longer citing supply chain issues, the hard part will be to get that last bit of inflation out of the system. There probably needs to be a bit of #demand destruction. Pinpointing how much will be difficult. It’s why, absent a collapse in employment, we do expect the Fed to cut #rates modestly, and wait to see how the economy responds before determining the timing of their next move. It’s an environment that reminds us of the mid and late 90s, back when New York sports were thriving. But just like our teams, you never know what’s going to happen in the fourth quarter. Todays #CSQuickTake by John Raggio, CFA

As a firm recently having gone through a merger, we firsthand experienced the challenges of communicating it to our various stakeholders. We thought why not discuss that with the experts at the NIRI: The Association for Investor Relations? As the largest professional investor relations association in the world NIRI has members representing over 1,500 publicly held companies and $12 trillion in stock market capitalization. We had the wonderful opportunity of Co-Hosting an Afternoon Tea where we covered various topics ranging from communications during a merger or rebrand, how to manage spinoffs and, impactful storytelling to ensure the message is being effectively communicated. Our very own, John Raggio, CFA, hosted a panel in which we focused on communicating M&A activity to 1) clients 2) shareholders and 3) employees. This was an entirely new world for us and thanks to Peter McDermott from Korn Ferry for the inclusion of Cannell & Spears at the event, we learned quite a few things: - As much preparation goes into it, the response will always be a big unknown  - But, clearly laying out the story/opportunity to the various stakeholders does help  - You may not always be in the room, so try to minimize the game of telephone by prepping stakeholders accordingly - Company cultures are a key ingredient, so try to foreshadow how that will operate – i.e coming together or maintaining separate identities  - Laying out exactly how you've prioritized your clients/shareholders needs makes it much easier to explain why the merger is a good idea - Complementary mergers or acquisitions are usually easier to communicate, but as time passes continuing to explain how the transformation is beneficial to clients/shareholders is just as important Thank you again NIRI: The Association for Investor Relations for letting us into your world!