In the latest Charts of the Week, CEO Eric Boyce, CFA discusses: 1. tariffs are higher overall despite the noise about levels about "deals" - watch the hard economic data in the coming months 2. producer prices witniessing margin compression 3. retail sales mixed 4. 2nd quarter GDP looking like 2.5% according to Atlanta Fed GDPNow - could be the best quarter of year, but lots of data due to be released next six weeks... 5. some credit indicators weakening; consumer is reasonably good shape. 6. tourism at 10% of GDP - is important 7. debt levels are unsustainable and will need to be address in congress/fiscal policy at some point 8. equities strong, but P/E multiples moving back higher as well - increases risk if economic data/estimates drop considerably due to economic slowdown
This week, CEO Eric Boyce, CFA discusses: 1. expected slowdown in economic growth, earnings 2. drop in container shipments from china; impact on tariffs on S&P 500, small business 3. country impact from tariffs; how china is pivoting 4. impact by sector; expectations and response from US companies 5. observations on credit, productivity, activity ahead of the tariffs 6. several data points on how consumers are planning for the next 6-9 months
It is no secret that the cost of college is rising with no end in sight, requiring further planning, strategy, and saving. The Section 529 funds are very common recommendations for families saving for college. While this is great for some families, there are good, bad and ugly aspects of these plans and some families will benefit more from other strategies. The Good: The biggest benefit to a 529 fund is the potential tax savings. The growth of the investments within the fund, and the withdrawals are all tax free when used for qualified education expenses (as defined in the IRC). Another benefit is the new 529 laws have expanded qualified education expenses to include trade schools and other forms of higher education. However, there are also several shortcomings. The Bad: 529’s often have very limited investment options, many of which are age-based investing, often not being as adjustable to risk tolerance and preference. The family does not get a lot of discretion. Another shortcoming is they have to be declared on the FAFSA and can lower your need based aid. The Ugly: If 529 funds are not used for education, they are stuck in this account. The only options are to change the beneficiary to another family member or withdraw and pay income tax on growth, as well as a 10% penalty. While there is a new provision to roll leftover balances into a Roth IRA, read the fine print. There are a lot of strings and checkboxes attached to this provision. In conclusion, while these vehicles are still the best strategy for some families, there are other vehicles referred to as tax or asset advantaged assets that are more beneficial for other families. These assets do not have many of the withdrawal constraints and limitations of 529’s. These assets can often be sheltered from the FAFSA, potentially increasing your need-based aid. Every family needs to understand which strategy will be most beneficial for their family. Contact Boyce & Associate today for expert recommendations on which strategy is best for your family.
Dear Clients and Friends,
This week, CEO Eric Boyce, CFA discusses: 1. What to expect in the GDP numbers this week, and the notable rise in mentions of "uncertainty" and "tariffs" in the new Fed composite survey 2. Hard data still holding up amidst the decline in soft data 3. Outlook for orders, capital spending declining; meanwhile prices paid rising in anticipation of tariffs 4. Inventories rising in advance of tariffs - likely a tailwind for the second quarter, but a headwind for the second half of the year, given the current rhetoric 5. Regional Fed service sector data also showing some weakness... 6. Dollar weakness (off trough, though) - what are the implications 7. Gold strength likely to persist 8. S&P 500 earnings estimates coming down ~15% - an analysis of the current adjustments 9. Evidence that markets have reasonable upside following episodes where the market is down 5% over two days (recent occurrence)
This week, CEO Eric Boyce, CFA discusses: 1. Issues on trade related to China and the length of negotiation for deals 2. the potential impact on small business & on capital spending 3. Soft data is certainly soft at this point due to global uncertainty...among consumers, business owners and investors 4. Some hard data - retail sales, regional Fed surveys - do not yet reflect the increasing impact of tariffs 5. US dollar weaker - implications for trade, bond yields 6. negative wealth impact of stock declines, where is valuation, earnings estimates falling as expected
Key Takeaways Exit Strategies Aren’t One-Size-Fits-All: Each option—whether it's a sale, IPO, or succession—has its own pros and cons depending on your goals and business model. Investor Confidence Relies on Exit Planning: A clear, strategic exit plan reassures investors and makes your business more attractive to potential buyers. Legal and Financial Readiness Is Crucial: Incomplete records, legal issues, or unclear ownership can derail even the best exit plans. Market Timing Affects Outcomes: Economic conditions, buyer demand, and industry trends can significantly impact valuation and deal success. Operational Structure Impacts Transferability: Businesses with well-documented systems, contracts, and teams in place are easier to transition and command better offers. What is a Business Exit Strategy for Entrepreneurs? Everything You Need to Know Every entrepreneur starts their journey with energy and vision, but what happens when it's time to move on? Whether it's selling the business, retiring, or pivoting to a new venture, having a business exit strategy in place is essential. A business exit strategy is a structured plan that outlines how a business owner will transfer ownership or liquidate their stake in a company. A good exit plan ensures that the transition is smooth, financially sound, and aligned with long-term goals. What is the Best Exit Strategy for a Small Business? For small business owners, planning an exit strategy may feel like a distant concern—something to worry about only when retirement is on the horizon or when things take an unexpected turn. But in truth, preparing a business exit strategy early gives entrepreneurs more control over their future and helps maximize value when the time comes to move on. The best exit strategy for a small business depends on a variety of factors, including your long-term goals, the nature of your business, and your financial expectations. Whether you hope to pass the company down to a trusted employee, sell it for a profit, or shut it down completely, having a well-thought-out plan can ease the transition and protect everything you’ve built. Overview of 6 Common Exit Strategies
CEO Eric Boyce, CFA provides a historic perspective on volatility, in light of recent market developments. The discussion includes: 1. Historical major one-day declines and longer-term drawdowns give way to resounding positive future market performance over time. 2. The relative frequency of drawdowns over time might surprise you. 3. Intra-year downturns are common in years where the market is up for the year. 4. Time greatly dampens the near term impact of volatility. 5. The probability of positive performance really goes up the longer you remain invested. 6. Chart showing how the market goes up +70% of the time, and that bull markets are MUCH more prevalent than bear markets. 7. The value of staying invested according to your investment policy throughout your investment horizon and NOT trying to time the market.