investor resources

River Wealth Advisors' Currents Newsletter

The advisors at River Wealth are committed to enriching investors by sharing their insights and understanding of the market by regularly publishing the quarterly Currents Newsletter.

INSIDE THIS ISSUE - WINTER 2019

River Views: Our Perspective on the Market
A Day in the Life of Your Portfolio: BONDS
Developing Our Talent to Better Serve You
Leadership in Our Community
Access Your Portal From Anywhere!
Need a Document for Your-End Taxes?


River Views: Our Perspective on the Market

River Views - Carin

As we look at 2018 through the rear view mirror, we see a year of volatility in the financial markets - both domestically and globally. The fourth quarter was similar to its predecessors in the sense that the U.S. economy remained strong, but concern over the slowdown of foreign economies, particularly those of China and Europe, intensified. Additionally, markets rode the wave of uncertainty over the possibility of Brexit, ongoing turmoil in the Middle East, and concern regarding the Federal Reserve’s anticipated path for interest rates. As expected, Democrats won the majority of the House in the midterm elections, and we closed out the year looking forward to continued gridlock in Washington, D.C.

Since 1932, U.S. markets have rebounded each year following a downturn. One month into 2019, we have recovered from the market lows in December and the fundamentals of the economy remain solid. Consumers are spending, unemployment and interest rates are low, the corporate tax rate changes have taken effect, and earnings are looking good. The Federal Reserve has softened its view about interest rate increases in the coming year, assuaging concerns of a Fed-induced slowdown, which provided the stock market with a boost of confidence. However, with an $11 billion hit from the 35-day government shutdown and the potential for more down the road, all eyes remain riveted on what impact this will have on the economy and valuations.

What does all of this mean to you and your investments?

Investing is a long-term proposition. There will be good quarters and bad quarters, and despite our emotional tendencies to want to act or react to these swings, it is important to stay the course we developed to meet your long-term objectives.

Years like 2018 are unusual, but despite the discomfort they create, opportunities arise during downturns as market participants recalibrate their expectations. Rest assured, your River Wealth Advisors team is continually assessing your account to ensure you are well-diversified and can handle any market situation, so you stay on track to meet your goals and objectives. This is what drives us every day.

We are here to answer your questions, discuss your concerns, share our insights into market conditions, and ensure your portfolio provides you with confidence for your life’s journey. In addition, please visit us at RiverWealthAdvisors.com for timely articles that may be of interest to you. 


A Day in the Life of Your Portfolio: Bonds

Portfolio Bonds

Bonds and stocks. Stocks and bonds. Either way you look at it, a solid investment strategy includes allocations of both in your portfolio. Bonds and stocks are both securities, but the role of investors differs.

Whereas stockholders have an equity stake in a company (that is, they are owners), bondholders have a creditor stake in the company (that is, they are lenders). As a lender, bondholders are paid interest throughout the duration of the defined term (or maturity, after which the bond is redeemed) and have priority over stockholders if things go bad.

Bonds are particularly attractive to clients who are tapping into their investments for income and have less tolerance for risk in their portfolio. The biggest issuers of bonds are governments and corporations such as banks, consumer goods, and health care companies. Bonds normally provide investors a positive rate of return, especially when interest rates and inflation are low. When inflation goes up, so do rates, and bond returns decline. This phenomenon, which has only occurred 12 times in 120 quarters, happened in the second and third quarters of 2018.

Guided by its fundamental, value-driven investment approach, River Wealth Advisors addressed these conditions by evaluating portfolio structure, alternative securities and spreading allocations across industries and issuers to prevent overexposure to risk.

River Wealth Advisors’ portfolio managers monitor our clients’ bond holdings and evaluate our brokers’ offerings daily to determine what will fit your needs. We negotiate the purchase, primarily buying bonds to manage until maturity, and allocate the bonds to the respective client accounts. Importantly, we evaluate existing holdings and take action when needed to address unanticipated developments. You can view recent allocations to your account on the River Wealth Advisors app or on your portal.

Bonds continue to be a prudent component of a long-term investment strategy, and we assess opportunities every day to drive greater value for your portfolio.


Jennifer (Reisinger) Collins

Developing Our Talent to Better Serve You

Please join us in congratulating Jen (Reisinger) Collins or achieving her Certified Financial PlannerTM certification and being promoted to Advisor with the firm! In addition to her current role as Chief Operations Officer, Jen will provide financial planning and investment management services to clients. “As a longtime member of our team, Jen has always dedicated herself to advancing her knowledge and skills to provide exceptional service to our clients,” said Robert Caplan, CEO of River Wealth Advisors. “We are very proud of her accomplishment.”*

Leadership in Our Community

tfec-logo.jpg

Robert Caplan, CEO of River Wealth Advisors, was appointed as Vice Chair for the Foundation for Enhancing Communities (TFEC) Board of Directors. During his 20 years of service to TFEC, Bob also served as Treasurer and was on the Investment Advisory Committee.

Founded in 1920, the foundation is a nonprofit organization whose mission is to stimulate philanthropy and enhance the quality of life in the community through funding for a wide range of community needs. Made up of local leaders from diverse backgrounds, TFEC’s Board of Directors provides guidance for the overall direction and goals of the organization.


River Wealth App

Access Your Portal From Anywhere!

We are pleased to announce a great new feature that allows you to access your existing client portal from anywhere in the world using your smartphone or tablet.

We now have an app available to use on Apple and/or Android devices. Simply download the app by searching for River Wealth Advisors at the Apple Store or Google Play Store. To log in, enter the same username and password associated with your client portal.

If you have questions or need assistance, contact Andrew O’Gorman by phone at 717.888.9830 or by email at aogorman@riverwealthadvisors.com.


Need a Document for Year-End Taxes?

Don’t forget that as a client of River Wealth Advisors, you can easily and securely view your portfolio reports online. We can also provide your accountant with any year-end documents needed for tax preparation. Simply log onto RiverWealthAdvisors.com and go to the Client Access page.

To view your account, simply click on the links to connect to password-protected websites. You will need to enter your account ID and password. If you do not have the necessary account password information, contact River Wealth Advisors for help by calling 717.888.9830.

 

*Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, Certified Financial Planner™ and federally registered CFP (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

IMPORTANT DISCLOSURE INFORMATION: Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by River Wealth Advisors LLC [“River Wealth”]), or any non-investment-related content, made reference to directly or indirectly in this commentary, will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or as a substitute for, personalized investment advice from River Wealth. Please remember to contact River Wealth in writing if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or modify any reasonable restrictions to our investment advisory services. River Wealth is neither a law firm nor a certified public accounting firm, and no portion of the commentary content should be construed as legal or accounting advice. A copy of River Wealth’s current written disclosure brochure discussing our advisory services and fees continues to remain available upon request or at www.RiverWealthAdvisors.com.