General News

We’ve always emphasized the importance of how investing in your employer sponsored retirement plan is for the long term. Recent examples of increased market volatility should help reinforce that message.

Example One: January 20, markets rose solidly throughout the day, with the Nasdaq, best-known for technology stocks, up nearly 2% at its highest point. However, the gains were all removed during a period of late selling.

Example Two: Just two business days later, on January 24, the situation was reverse. The Standard & Poor’s 500 Index of the largest U.S. companies was down by as much as 4% yet finished in positive territory after a late-day surge.

Examples like this highlight that for long-term investors, not paying attention to the day-to-day can be a wise strategy.

More Volatility Ahead?

It’s not hard to imagine more volatility ahead, along with the potential for losses in a stock market that low interest rates have fueled. It may not be possible to avoid the risks associated with the two biggest factors affecting the markets: accelerating inflation and an ongoing pandemic. 

Given a high likelihood of increase volatility and potential market corrections maintaining an educated understanding that markets have always had volatility as well as both peaks and valleys will be important for all investors. Investors should also keep sight of that over time these inevitable corrections have given way to higher peaks.

Embracing balance and discipline

Market Outlooks for 2022 remain guarded, though not bearish. 

Long-term equity return outlooks will be influenced by how policymakers remove monetary support that had been required to withstand the early stages of the COVID-19 pandemic.

Fixed income is more optimistic, especially considering the difficult situation, although interest rates remain historically low. 

Policymakers face a balancing act in the months ahead, one that could carry significant implications for economic growth, inflation, and investment returns. While investors may find their discipline challenged by markets that have approached or already entered corrections or falls of 10% or more from recent highs.

Our message for retirement investors: Maintain perspective, tune out the day-to-day noise that can lead to impulsive decisions, and if you know that is not an option for yourself it may be time to reevaluate your allocation and to better align it with your risk tolerance. 

As always, we understand every situation may be different and you may have specific questions about your retirement investments or savings strategies. If you would like advice on either of these subjects, please email us at info@arcwood.com to set up a free one-on-one retirement review meeting.

Advisory Services through Arcwood Financial LLC. a registered Investment Advisory Firm. Arcwood Financial LLC., Arcwood Benefits Consulting, Inc. and Arcwood HR, LLC (dba Arcwood) are independent companies. Arcwood does not offer legal, tax or compliance advice. Past performance is no guarantee of future returns. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index.

This content was created by Arcwood Financial and distributed to their plan sponsor clients for use with their plan populations. Any distribution to other groups or use without a client/advisor relationship is prohibited.

Arcwood President & CEO, Peter Rowe, along with Diana Durham, President of Arcwood HR, detail how the latest federal vaccine mandates and OSHA regulations are likely to impact employers around the country.

0:05:57 – Background on the Path Out of the Pandemic Action Plan from President Joe Biden.

0:07:53 – “Vaccinating the Unvaccinated” – this portion of the Biden plan includes the specific employees and contractors that will require vaccination prior to January 18, 2022. This also includes masking and distancing requirements if the employees are in higher transmission rates.

0:10:43 – Centers for Medicare and Medicaid Services (CMS) guidance for providers or those who offer CMS services

0:12:59 – OSHA ETS enforcement of the federal vaccine mandate for employers and COVID testing guidelines for non-vaccinated employees – introduces the 100+ employee rule, weekly testing requirements for non-vaccinated employees, paid sick leave for vaccination and recovery, masking requirements, reporting and record keeping.

0:20:51 – Policies and processes employers must have ready prior December 4, 2021.

0:22:08 – Vaccination status documentation

0:26:15 – Testing for non-vaccinated employees

0:35:43 – Face covering requirement for non-vaccinated employees

0:39:04 – Paid time off for getting vaccinated (and potential side effects)

0:44:27 – Employee notifications

0:56:13 – OSHA Reporting & Records

1:01:47 – Resources – vaccination policy models / templates for employers, third-party support, CDC guides

January 4, 2022, OSHA ETS vaccination enforcement begins.

This video is for informational purposes only, and should not be considered direct “advice.” For consultation and advice in your particular situation, contact info@arcwood.com.

An often-unrecognized bad spending and savings habit comes in the form of something called “Lifestyle Inflation” or “Lifestyle Creep”.

When many people get increases to their income (even by a small amount), we see that spending—not saving—increases at a similar rate. This means each time a promotion, raise, or job change occurs, many people fall victim to spending more on certain everyday items like groceries or self-care. For others, it means turning luxury items into everyday necessities.

Though earning more is something to celebrate, lifestyle inflation can steal the additional financial stability and wellness these milestones should have provided. Instead of using that extra money toward paying down debt, saving more for a large goal, or investing for our future selves, money is put toward more fleeting items.

The first step toward fighting off lifestyle inflation is to recognize it. From there, focusing on a few of our core financial practices can help minimize the potential damage that can come from lifestyle inflation.

Prioritize Budgeting
Regardless of how much you make, be it $50,000 or $500,000, budgeting is the only way to know how much you must spend and how much you have available to save. This one financial planning staple lays the groundwork for understanding your financial life on a deeper level.

Needs vs. Wants
That fuzzy line that can sometimes make it difficult to separate “needs” from “wants” is another culprit in the fight against lifestyle creep. We all have basic living expenses to cover each month—rent or mortgage, utilities, a phone bill, food, and debts, to name a few. However, extras like more weekend getaways or new outfits, can start to slip into the “needs” categories when income increases.

Automatic Savings
Use this simple but powerful tool to avoid lifestyle inflation anytime income increases. Calculate how much extra you can expect from your bi-weekly or monthly wages and set that to go into savings every check through automatic withdrawals or payroll deductions.

Forget the Joneses
Lifestyle inflation can be hard to avoid if you’re constantly comparing your financial life to others. Remember, you can’t know for sure what someone else’s savings looks like. Maybe they saved for several years to afford that big purchase. Maybe they are deep in debt because of it. Don’t let comparison be the pitfall to your financial stability.

Reevaluate
Finally, be sure to review your budget and financial goals periodically. Most experts suggest checking in with your overall finances once per year or sitting down to review the numbers anytime an increase in income takes place.

Final Thought
Though not always fun at first, following these steps consistently can help put you on a financially healthy path for the future. Eventually, the sense of security you have from knowing how much you must spend and seeing your savings increase or debt go down you will start to receive better types of endorphins than you ever received from a new blouse.

Brandon Oliver with Arcwood reviews and demonstrate some of the features, tools and content available in the new Enrich online financial wellness tool. “

For more information, contact Brandon Oliver (brandon@arcwood.com).

Peter Rowe, President & CEO of Arcwood Benefits, unpacks the major federal legislative updates that are relevant for small businesses and their employees.

No Surprises Billing Act
FSA Special Rules
Transparency
Employer Repayment of Student Loans

For more information, direct questions, or to be included in future Town Hall meetings, email info@arcwood.com.

Diana Durham, President of Arcwood HR LLC, leads us through workplace changes going into effect (or likely) in 2021. These changes include:

New Laws in Arizona: Hands Free Arizona, Recreational Marijuana Legalization
FFCRA Extension
COVID-19 Vaccines New Year Reminders

For information, any direct questions, or to be included in future Town Hall meetings, email info@arcwood.com.

Matt Hatfield, from the Lohman Company LLC, details the Consolidated Appropriations Act of 2021, which includes updates to the small business benefits from the CARES Act of 2021 – including:

Amendments to the PPP
Second Draw Loans
Updates to the Employee Retention Tax Credit

For information, any direct questions, or to be included in future Town Hall meetings, email info@arcwood.com.

Peter Rowe, CEO of Arcwood Benefits, shares exciting news about an upcoming educational series on health care benefits.

For more information on this upcoming series, any direct questions, or to be included on the series itself, contact info@arcwood.com.

Matt Hatfield, CPA Partner from the Lohman Company, presents the latest updates related to the Paycheck Protection Program.

For more information on this topic, any direct questions, or to be included in future Town Hall meetings, email info@arcwood.com.

Diana Durham, President of Arcwood HR, details the latest updates related to the Families First Coronavirus Response Act (FFCRA), including – eligibility based on child’s remote learning, health benefits, paid and unpaid leave, and more.

Diana and special guest, David Veurink of HCM, then shed light on employer and employee options for social security deferral through the end of 2020.

For more information on these topics, any direct questions, and to be included on future Town Hall calls, contact info@arcwood.com.