Letter to Stakeholders, September 2024

Letter to Stakeholders, September 2024

Thursday, September 12th, 9:46 am EST. For a week in August, the markets looked pretty bad. But then the news refocused and by the end of the month, your balances were near all-time highs. Two weeks into September, your statement balances were down, up and now just slightly lower than August statements. This is typical of the historical “September Effect” – the stock market is historically negative in September – exacerbated by election year volatility. We expect the stock market’s ups and downs to be jagged (if not jarring) for the rest of 2024 as the news cycle navigates another possible government shutdown, declining inflation, reduction of interest rates, global conflicts and yes, our presidential election.

If you are adding to your investment portfolios when markets are going up and down, the effect of “dollar cost averaging” may improve your returns. A similar effect can occur when we “rebalance” your portfolio’s allocation between equity (stock) and debt (bonds). “Volatility” – ups and downs – is what makes the market a market. But besides markets, you have other items of interest as a client of ours this Fall (see below).

Fall Check-Ins  

For those of you who have allowed us to serve your family for more than a year, you are familiar with our twice per year meeting cadence. During these “check-ins” we take the opportunity to “get in a Zoom” together and update each other on the latest: your family’s goals and our techniques for supporting them. One of the areas of focus this Fall is ensuring we share visibility on your full team of advisors (estate planners, CPAs, insurance agents, etc.). We want to ensure your “team” is easily accessible to your entire family. Our Fall Check-Ins are hosted in October and November. Select your timeslot.

Black Diamond

Over the past few months, Doug and I have been onboarding a new (software) solution that will not only make our firm’s service to you more efficient, but will also help to increase your cyber security, coordinate your other advisors and improve how we communicate the steps to achieving your family’s goals. The tool is called Black Diamond and we hope the way you experience your finances (and our service to your family) becomes more transparent, organized and convenient. Over the next month we will work with a few clients who volunteered to “beta test” what we’ve implemented so far. By year’s end we expect to open the system to the majority of you. More to come!

Stakeholder Spotlight & Strategic Partners

Last month we previewed the Stakeholder Spotlight on health insurance specialist Lisa Humes. You can view the video replay here. Over the next couple of months, we may conduct a few more of these interviews as we give you a chance to hear from more of our Strategic Partners. Many of you already work with some of our Strategic Partners and the list is longer than those who are currently on our website (for example we haven’t posted Lisa yet).

Over the years we have been investing in our firm to bring the best of what’s offered through “big box” private banks to the independent channel of our family wealth advisory firm. This began early on with family governance, has continued with sustainable and alternative investment strategies and is accelerating by partnering with outside experts in law, risk management, concierge services and alternative investing. You will continue to see our investment (i.e. with technology) this Fall and heading into 2025 and beyond.

Until then, let’s enjoy the Fall weather, the anticipation of the holiday season and ease into the final days before voting begins for the election.  

Jason J. Howell, CFP®, CPWA®, CSRIC®

President

Jason Howell Company is a family wealth management firm that strengthens the finances of families making the transition from first generation success to family wealth. We envision a world where wealthy families give, grow and govern themselves in ways that enrich their local communities. We do this by reducing the fear, isolation and guilt associated with financial success.

Jason J. Howell, CFP®, CPWA®, CSRIC® and Douglas W. Tees, MBA, CFP® CAP®, CBDA  have spent a lot of time in the Washington, DC area, and are aware that many people who are first generation wealth suffer from a kind of "financial imposter syndrome."  Successful entrepreneurs and family businesses are always looking over their shoulder; government contractors worry about the next contract; former Capitol Hill staffers privately wonder if they should "feel bad" for the money they now make. Imposter syndrome is common among people who work for the many corporate headquarters based in this area as well. These feelings get in the way of properly managing family wealth. We empower them to get organized, build a team of advisors and make decisions.

Our typical "first generation wealth" families include dual income parents who work, save and have just the right amount of fun. For long-time, family owned businesses we focus on much family preservation as we do wealth preservation. 

First generation wealth success stories and family business owners realize that they:

• Need to “do something” with the cash in their checking/savings
• Need to eventually diversify their portfolio away from the family business
• Need an investment strategy for “up” and “down” markets
• Need a plan to mitigate market, credit, inflation, and political risks
• Need to start tax planning instead of just tax paying
• Need to be sure they are choosing the right work benefits
• Need to reduce financial miscommunications between family members
• Need to separate business finances from personal finances
• Need to separate family wealth from individual wealth
• Need a plan to provide space for both family and individual philanthropy 
• Need to plan for money while alive and for what happens after death