John Morris, managing partner and wealth manager, spoke with Capital Analytics Associates about ESG and blockchains emerging as popular trends for potential investments.
Read the full interview here
FOR IMMEDIATE RELEASE
Boston, Mass. (May 15, 2023) – Crestwood Advisors (“Crestwood”), a boutique investment advisory and wealth management firm based in Boston, is pleased to announce it has been named to the first-ever USA Today ranking of Best Financial Advisory Firms in the U.S.
USA Today developed the list in tandem with independent market research and data firm Statista. More than 32,000 Registered Investment Adviser (RIA) firms were considered by Statista, and the top list recognizes the top 500 firms that are most frequently recommended and best rated by the survey participants. In addition to survey results, Statista also included metrics in relation to assets under management in the final analysis.
“We are grateful to be recognized by USA Today on their inaugural list of the nation’s best financial advisors,” said Crestwood CEO and Managing Partner Michael Eckton. “We have proven again and again that our intense focus on serving our clients and supporting our employees is key to being a leading wealth management firm in today’s highly competitive market.”
Last year, Crestwood Advisors was named to the inaugural Forbes/Shook Top RIA Firms list of the top 100 firms in the nation. Earlier in 2022, the firm was named to the prestigious Barron’s 2022 Top 100 RIA Firms list.
As a growing wealth advisory firm, Crestwood’s nearly 50 financial planning and investment professionals, who serve families and individuals across New England, strive to meet clients wherever they are in life, providing guidance, tools and financial solutions to help them succeed.
The full methodology for the Best Financial Advisory Firms 2023 list can be found here. Crestwood did not pay a fee to appear on the published list.
Please see Crestwood Advisors’ important disclosures regarding awards and recognitions here.
We are pleased to celebrate the 20th anniversary of Crestwood Advisors!
Over the last two decades, Crestwood Advisors has grown from a small team crammed into a single office above Quincy Market to a leading wealth advisory firm. We were pleased to be listed on the inaugural Forbes/SHOOK Top 100 RIA Firms List, Best Financial Advisors Firms by USA Today and the perennial Barron’s Top 100 RIA List.
We began with the idea of building a highly client-centric advisory firm that would go beyond what traditional banks, brokerages or other competitors were willing to deliver. This premise has not changed, although we serve many more successful client families than we did 20 years ago, and we have built an organizational culture that has attracted the finest talent in our industry. Our firm began humbly with an emphasis on research and investment management, and we have expanded our expertise to counsel successful individuals and families through comprehensive financial planning, estate, tax, and philanthropic planning, as well as risk management.
None of this would be possible without our extraordinary clients. Thank you for the support and trust you have placed in us. You have welcomed us into your lives, and we are reminded daily what a privilege it is to be included in your family milestones, successes, and challenges. Without you, we would not be the vibrant business we are today. We now engage with more than 600 families in 40 states with combined assets of more than $4.5 billion. Today, we serve our clients out of offices in Boston, MA as well as Darien and Westport, CT.
We are incredibly grateful to have added so many dedicated & insightful partners and colleagues to the firm over these many years. Our partners and colleagues have provided a solid foundation for Crestwood to continue growing year after year – we are grateful for the dedication and enthusiasm you show every day. Your thoughtful and professional work allows Crestwood to continue advancing alongside our clients. Finally, thank you to our team members’ families, who provide the support for all of us to bring integrity and motivation to Crestwood and to spend meaningful time with our clients.
With 20 years of wealth management success comes 20 years of gratitude. Thank you for an amazing journey – we look forward to our shared future with you!
In March 2004, the U.S. Senate designated April as Financial Literacy Month to raise awareness of the importance of financial education and the consequences of a lack of knowledge about personal finances.
Financial literacy affects everyone: your family, friends, neighbors, colleagues, and community members. The concern arises because many do not receive the appropriate level of education on personal finances during their high school or college years.
When the time comes to make financial choices in adulthood, those without access to information or proper financial education risk making errors with critical decisions that can negatively affect their financial futures.
While getting an education early can help, more advanced financial topics arise as we move throughout our lives. Here are some basics and when you may start to face them. Learning these topics and being prepared to tackle them will help everyone!
o Value of a dollar: Learning the value of a dollar through chores or a part-time job can help develop an understanding of the concept of money.
o Compounding interest: Understanding compounding interest and how a dollar grows is a concept taught in school during most algebra classes.
o Spending plan: Teaching kids and teenagers how to allocate their money into different categories like spend, save, and donate will help them understand the purpose and uses of money.
o Credit score and debt management: Building credit and managing debt is a skill that can be difficult to navigate for all ages. Knowing the composition of your credit score, good vs. bad uses of debt, interest rates, and strategies for paying off debt is relevant for most adults.
o Investing: How, when, where, and why to invest should be understood at a basic level for young adults. The information available is vast, but individuals should look to respected financial institutions for education.
o Setting goals: Setting savings goals for short, medium, and long-term goals is necessary to have a path ahead for the future. Financial goals change as life does (marriage, children, etc.), so setting new goals will be required as time passes.
o Net worth: Adults should develop a net worth statement showing assets minus liabilities. This is helpful to gauge your current financial standing and how close or far you are from meeting the goals you set.
o Employer benefits: Learning how to take advantage of and maximize employer benefits like retirement plans (401(k), 403(b), etc.), medical and dental benefits, and Health Savings Accounts (HSAs) is low-hanging fruit. Making the most of your benefits now allows for an easier road ahead.
o Protection: Ensuring financial protection with life, disability, and property and casualty insurance is essential at all ages but should be looked at closely as you accumulate assets and have more financial obligations. Also, having estate planning documents to protect you and your family is essential in adulthood.
Late Career and Retirement
o Financial plan: A financial plan is crucial as you begin to think about the next chapter. Understanding how much you have accumulated and how to make it last during retirement is at the forefront of most people’s minds when creating a financial plan.
o Long-term care planning: Having a plan for how you will pay for medical expenses and specialized care as you age makes a big difference when a major medical event does occur.
Advanced Ages
o Avoiding abuse: Protecting yourself from scams and thieves is important at all ages, but those at advanced ages are particularly vulnerable. Educating yourself on how to prevent and avoid loss and asking someone you trust for help overseeing your finances may save you stress and loss of money.
o Leaving a legacy: It may have been many years since you created your estate planning documents. Will your assets transfer as you currently desire? What type of legacy would you like to leave behind?
As your financial situation and decisions become more complex, having a team of experienced professionals who can educate and advise you is critical to a successful financial future. Contact your team at Crestwood if you have questions about your financial situation or have a family member/friend that could use our help.
Times of significant volatility in the markets create opportunities to reevaluate and rebalance your portfolio assets.
“Expect volatility, and where there’s volatility there’s opportunity,” said Jason Hendricks, a Milford resident and portfolio manager with Crestwood Advisors. “At the same time, keep your eyes open to make sure your investment portfolio is aligned with your plan. It isn’t a competition — your goal is not necessarily to hit a certain benchmark or things like that. You should figure out what you are trying to achieve, and make sure your portfolio reflects that.”
Click here to read the full article
Women are now earning, controlling, and inheriting more money and assets than ever before. Despite these improvements, it is still challenging to balance building a career with the expectations of being a caregiver to their children and aging parents.
Leaving the workforce to care for a family is innately nurturing but may hinder women’s ability to save towards their 401(k) and benefit from their employer’s matching contributions. Conversely, daycare is costly, and parents may feel like they are missing out on their child’s development. This is the reality and sacrifice women face daily.
The decision to stay home permanently or temporarily can have an impact on women’s earning potential. Lower lifetime earnings can limit Social Security benefits, reduce potential pension income and retirement contributions, and result in a smaller nest egg in retirement.
A shortage in savings can become automated over time and create indecision and open-ended questions: How heavily do I rely on my partner’s income? What happens if we get divorced? How do I protect myself? These are all questions many women consider when making difficult life-changing decisions.
In addition to unbalanced gender expectations, women have a longer average life expectancy than men, yet many do not have a Financial Plan in place. Even with modest inflation assumptions of 2.5%, basic living expenses will increase dramatically during retirement, and women will need their resources to last 20-30 years longer than previous generations.
If you find yourself struggling to balance the demands of your time, you are not alone. Here are some strategies to help women feel empowered to take control of their financial destiny:
For example, at a 6% college tuition inflation rate, assuming a moderate rate of return of 5.6%, you can set aside $1,000/ month for 18 years to fulfill 100% savings goal for $55K University. Save early in employer-sponsored plans to take advantage of the power of compound interest, earnings, and employer matches. Contributing $6,000 annually into a 401(k) plan at age 25 each year until 67, you can amass $1.19M at 67 with annual compounding ($258,000 in contributions and $934,000 in interest).
Women should allow themselves to be in the driver’s seat and build a baseline plan to have the financial freedom they desire. Reach out to Crestwood today so we can partner with you to gain greater control over your financial life!
FOR IMMEDIATE RELEASE
Boston advisory firm continues to be recognized as a leading RIA firm
Boston, Mass. (March 13, 2023) – Crestwood Advisors (“Crestwood”), a boutique investment advisory and wealth management firm based in Boston, is pleased to announce it has been recently named to the inaugural WealthMangement.com RIA Edge 100 list for 2023.
The RIA Edge 100 was developed by the Wealth Management IQ team in partnership with Discovery Data. Qualifying firms were limited to those that provide financial planning services, have high-net-worth individuals as more than half of their client base and manage at least $250 million in assets as of June 30, 2022. RIA Edge 100 firms exemplify the most impressive growth rates combined with the best client ratios and CFP certifications, according to WealthManagement.com. In their judgment, this list represents firms with the greatest success while continuing to provide high-quality, hands-on services to an expanding client base.
“It is an honor to be recognized in new ways for the hard work of our teams spread across New England,” said Crestwood CEO/Managing Partner Michael Eckton. “As an RIA firm that puts in continuous efforts to expand our service offerings and team to help clients achieve their financial goals, it is rewarding to receive industry accolades and validation. Reinvesting in your business takes work and dedication. I am very thankful to our Crestwood team who make recognitions like this possible.”
The RIA Edge 100 is not a ranked list. The full methodology can be found here. Crestwood did not pay a fee for obtaining or marketing the award.
Please see Crestwood Advisors important disclosures regarding awards and recognitions here.
Billy Spencer, a wealth planner at Crestwood Advisors, discusses how 529 college savings plans can lose money to taxes and fees depending on the state they are sponsored in.
Click here to read the full article
Trusts can be an effective strategy for wealth transfers when interest rates rise to help fight inflation. The effect on the performance of trusts for estate planning vehicles is often linked to the federal funds rate.
“It’s important to emphasize that there is a very limited downside to most of these strategies,” said Alexandra Blake, director and wealth advisor at Crestwood Advisors. “Even if the investment return doesn’t beat the hurdle rate, the only sunk cost is the few thousand dollars to set up the initial vehicle.”
Click here to read the full story from Financial Advisor.
Debt Ceiling Limit – A Game of Chicken
Congress is facing a stalemate on raising the debt ceiling limit as Republicans and Democrats continue a dangerous game of brinksmanship. If the debt ceiling is not raised by June, the United States could default on interest due on its debt jeopardizing the country’s reputation and credit rating. From a credit perspective, the U.S. is generally perceived as the safest borrower and a re-evaluation of our creditworthiness could increase interest rates and further slow US economic growth.
The debt ceiling limits the amount the US Treasury can borrow. The reason the U.S. government is hitting the debt limit, yet again, is because most years the government spends more than it receives in taxes. The annual shortfall is referred to as ‘the deficit’. Each year that we run a deficit, it increases the debt load. Below is a chart showing the annual deficit and the amount added to the debt load each year:
Annual Federal Deficit
Source: US Treasury 9/30/22
At a basic level, deficits are not always bad. The U.S. government needs flexibility to run deficits, especially during recessionary periods. During the pandemic and shutdowns, the U.S. government spent $5 trillion in stimulus programs which helped support families and the U.S economy. To pay for this stimulus, the government issued debt and the deficit increased sharply. Ideally, after the economy recovers, governments should return to a balanced budget.
Currently, the total Federal debt stands at $31.4 trillion, a number so large it is hard to comprehend. The is the equivalent of $93,870 per every living person in the States. Yikes!
To the brink!
For the current Republican-led Congress, Kevin McCarthy was elected speaker of the House of Representatives after 15 rounds of voting. During this process he offered many concessions, one of which was to force spending cuts with any bill extending the debt ceiling limit. Since McCarthy controls the voting agenda in the House, he can effectively block any bill not to his liking.
Democrats seem equally motivated to protect their priorities. Since 2020, Biden and the Democrats enacted several hard-won legislative victories including the Infrastructure and Jobs Act and Inflation Reduction Act, which ushered in broad changes to spending and taxes. Few Democrats will be keen to make cuts to these programs.
The debt ceiling debate will require compromise which seems in short supply in today’s charged political environment. Heightened bipartisanship, especially in Congress, further raises concerns that one party could be influenced by their more extreme members despite the massive financial and historical implications of defaulting on our debt.
Tough choices
The current deficit is enormous. For 2023, the Congressional Budget Office projected the deficit to be $908b, a sizable 15% of total outlays. Spending cuts to close this gap will be substantial and painful. Further, many big spending areas are politically untouchable like Social Security, defense, veteran benefits, and interest on debt. Balancing the budget would require significant cuts to the ‘touchable’ areas like healthcare and social services.
Treasury’s options
Having reached the debt ceiling, the Treasury has stopped payments to government-controlled retirement plans which buys time. The Treasury can still pay wages and interest on debt until sometime in June.
There are two somewhat radical solutions that the Treasury could try. One option is the Treasury could invoke the 14th Amendment, which states that the U.S. cannot default on its debt, arguing that the debt ceiling limit is unconstitutional and hence ignore it.
Alternatively, the Treasury has authority to issue collector coins and could print a $1 Trillion coin, which would give the Treasury funds to pay its bills. Both workarounds would do little to reassure investors that Congress stands behind the debt and would exacerbate the perception that our government is dysfunctional.
Hopefully we don’t end up with either of these ‘solutions’.
Wake up Voters!
The long-term effects of debt are too easily ignored by politicians when voters don’t demand progress on deficits. Compared to the fiery rhetoric that motivates today’s voters, a conversation on debt reduction excites no one. Politicians rarely face consequences for increasing debt and most want to increase spending and stimulate economic growth when voters hit the polls, helping reelection efforts.
Unfortunately, it may take a crisis for voters to realize that debt and deficits matter. Politicians need to know that voters care about the fiscal standing of their country. Most would argue that the debt ceiling limit legislation is useless, considering the limit has been raised 78 times since 1960. This time, perhaps, the game of chicken increases the public’s awareness of our debt situation and forces politicians to focus on the budgetary consequences of their legislation.
We last had a similar crisis in 2011, when an agreement was not reached until very close to the deadline. Markets temporarily sold off but recovered within the following months once the debt ceiling was raised and the “crisis” was resolved albeit at the 11th hour. If history is an example, we do not believe this should cause anyone to alter long-term investment strategies as short-term market moves are invariably hard to predict and markets can bounce back quickly.
Often it is the case that things need to break before politicians find the will to fix them. Ultimately, we view an inability to raise the debt ceiling as a very low probability but high-risk event – it should be monitored but not cause panic. While we do not believe the U.S. will default on its obligations and has ample capacity to service debs, it is likely that this game of chicken affects markets and raises short-term volatility.