FA-IQ reached out to advisors to ask: What are the top financial advice questions you are getting from your clients?
Katherine Forrester Schneewind, CEO and founder of High Note Wealth. Deephaven, Minn.-based Schneewind has been in the industry for 25 years and has around $400 million in client assets.
“There seem to be two predominant questions for me at this time: #1 'Am I going to be OK?' #2 'Are you concerned about the market crashing?'
My response to #2 is while we are always alert and watching, I am not concerned because we have been through this before — September 11th, the great recession of 2008-2009. We have 25 years of experience managing up and down markets. This is why our clients hire us — so we can take this worry off of their minds so they can focus on their family and career. This is what we do best.”
“Big questions include ‘What are future tax rates? Inheritance tax rates/limits? Capital gains? Dividend taxes?’
These questions — and any eventually changes in the tax code — will drive many significant decisions in 2021.
Being out in front of this during 2021 is critical.”
“The most asked question is: ‘How do I live off of the income of my portfolio with bond yields being so low?’
We believe fixed income is the most overvalued asset class that we track. Given the stretched valuations in fixed income, we are starting to tilt more towards private credit and real estate to replace part of our bond allocations. I think the slow rotation out of bonds into other fixed-income surrogates will be front and center during 2021 and beyond.”
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