In the world of nonprofit governance, fiduciary responsibility is one of the most crucial obligations for board members and finance committees. Fiduciary standards of loyalty and care are fundamental to protecting the organization’s financial health and mission. A key tool in managing these responsibilities is the Investment Policy Statement (IPS). This document serves as the blueprint for how a nonprofit manages, monitors, and evaluates its investment portfolio in alignment with its goals. Learn more

Markets were volatile in the third quarter as investors faced political turmoil and increased uncertainty about future economic growth, but the return of Fed rate cuts and solid corporate earnings helped to offset those political and economic anxieties, and the S&P 500 hit another new all-time high and finished the quarter with strong gains. In the third quarter, we began to see other stocks (the 493) participate in the stock market’s rise. Learn more.

With participants thinking erroneously that there is a guaranteed paycheck built into their retirement plan, the production of an “Income Target Date Fund” has grown exponentially. Since 2020, some target-date series now include a form of guaranteed income, providing participants with a more predictable future. Learn more about the TDF with an Annuity.

Beneficiary designations are a critical yet often neglected aspect of retirement plans. Many participants mistakenly believe that their retirement plan assets will be distributed according to their will or trust. However, retirement accounts are governed by their own rules, meaning the named beneficiary on the account will typically inherit the funds, regardless of other estate planning documents. Learn more

Many advisors recommend saving 15% of pre-tax earnings, including any employer match, to prepare for a secure retirement — but to accomplish this, timing is crucial. According to Forbes, savers need to begin by age 35 to retire comfortably by age 65; to retire by age 62, they’d need to get started by 25. Looking under the hood at participant data allows plan sponsors to better tailor strategies that help participants accelerate savings goals — and avoid financial speed bumps along the way.

Fall is by far my favorite season. One reason why is because it's the time of year we, at McKinley Carter, begin our budgeting and outlook planning for the upcoming year. It is a time for us to assess progress, address things that need attention, and make adjustments as needed. We use what we have learned to help make decisions that put us in the best position to succeed, so that we can continue to do the work we love with clients and our community. We have similar conversations with our clients ― talking through year-end strategies to help them finish strong and be best-prepared for the year ahead. Knowing they have a sound financial plan to act on allows our clients to spend more time focusing on the things that provide them with meaning and purpose, a real return on life. Find out what five actions we like to discuss with clients to help them finish out the year in a strong, impactful way.

Way back in 2017, the Tax Cuts and Jobs Act established a brand new program to encourage investment into economically disadvantaged communities. This program, called the Qualified Opportunity Zone program, offered real tax incentives for investors through potentially deferred gains, a step up in basis, and tax-free growth. At the outset, investors with large realized capital gains were given the opportunity to reinvest and potentially save more by holding onto their investment longer; but with the capital gains tax deferral deadline coming up on December 31, 2026, can it still make sense to look at Opportunity Zones for tax savings? The first step in answering this question is to understand what is a Qualified Opportunity Zone and how investors interact with them. Learn more.

With all the fun and activity of summer, it can be hard for investors to maintain their concentration. The stock market, though, has been picking up that slack for some time now. Peaking under the hood of the U.S. stock markets, we see them attaining a degree of concentration not seen for many years. This “concentration” refers to the outsized influence that a few stocks have on stock market indices, because of how the indices are put together. Fundamentally, you can think of concentration as the opposite of diversification. While an index may appear diversified on the surface, in reality it may be substantially skewed toward a handful of companies or a particular sector. So how does market concentration work? Learn more.

When considering if a Roth Conversion is right for you, it's important to evaluate your current financial situation, future income expectations, and long-term retirement goals. We encourage you to seek the guidance of a financial professional to review the complexities of this strategy. That said, here's an informative introduction to the Roth Conversion strategy — how it works, why one would consider taking advantage of it, and when it could make the most sense to be considered.